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Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 186,000 Real estate commissions 16,100 Legal fees
Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 186,000 Real estate commissions 16,100 Legal fees 1,900 Expenses of clearing the land 3,100 Expenses to remove old building 2,100 What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?
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