Elway Company purchases land for $85,000 cash. Elway assumes $2,500 in property taxes due on the land. The title and attorney fees totaled $1,000. Elway has the land graded for $2,200. They paid $10,000 for paving of a parking lot. What amount does Elway record as the cost for the land?
a. $88,200
b. $100,700
c. $90,700
d. $85,000
Ans: c. $90,700
Business
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