Pawtucket Inc purchased land, paying $150,000 cash as a down payment and signing a $170,000 note payable for the balance Pawtucket also had to pay delinquent property tax of $3,000 title insurance costing $2,000, and $20,000 to level the land and to remove an unwanted building The company paid $51,000 to remove earth for the foundation and then constructed an office building at a cost of $3,500,000. It also paid $95,000 for a fence around the property, $14,000 for the company sign near the property entrance, and $16,000 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? prepare

How does manogoment detivmine the cost of an asset