Question Content Area

Cost of a Fixed Asset

Borges Inc. recently purchased land to use for the construction of its new manufacturing facility and incurred the following costs: purchase price, $76,000; interest charges, $500; real estate commissions, $4,800; delinquent property taxes, $1,500; closing costs, $3,300; and clearing and grading of the land, $8,100.

Required: Determine the cost of the land. $fill in the blank 1