Question
The Crying Onion purchased a parcel of land six years ago for $299,500. At that time, the firm invested $64,000 grading the site so that
The Crying Onion purchased a parcel of land six years ago for $299,500. At that time, the firm invested $64,000 grading the site so that it would be usable. Since the firm wasn't ready to use the site itself at that time, it decided to lease the land for $28,000 a year. The company is now considering building a hotel on the site as the rental lease is expiring. The current value of the land is $355,000. The firm has no loans or mortgages secured by the property. What value should be included in the initial cost of the hotel project for the use of this land?
$299,500 |
$355,000 |
$363,500 |
$419,000 |
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