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Ayer Inc. purchased land, paying $ 1 5 5 , 0 0 0 ?cash as a down payment and signing a $ 1 7 5
Ayer Inc. purchased land, paying $ ?cash as a down payment and signing a $ ?note payable for the balance. Ayer also had to pay delinquent property tax of $ ?title insurance costing $ ?and $ ?to level the land and to remove an unwanted building. The company paid $ ?to remove earth for the foundation and then constructed an office building at a cost of $ ?It also paid $ ?for a fence around the property, $ ?for the company sign near the property entrance, and $ ?for lighting of the grounds. Determine the cost and prepare the journal entry for the company's land, land improvements, and building. How does management determine the cost of an asset?
The cost of the land is $
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