Blossom clinic purchases land for $45 cash. the clinic assumes $4000 in property taxes due on the land. the title and attorney fees totaled $3200. the clinic had the land graded for $6100. what amount does blossom clinic record as the cost for the land?

The answer is: The cost of the land is $457,200

Explanation:

To determine the total cost of the land acquired by the Blossom Clinic, we must add the purchase price, unpaid property taxes and legal fees.

Cost of the land = $450,000 + $4,000 + $3,200 = $457,200

Land grading is not included since it is a type of land improvement.

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.