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This addresses the total costs of a new/acquired business

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Fast Delivery Company acquired an adjacent lot to construct a new warehouse, paying $30,000 and giving a short-term note for $270,000. Legal fees paid were $1,425, delinquent taxes assumed were $12,000, and fees paid to remove an old building from the land were $18,500. Materials salvaged from the demolition of the building were sold for $4,500. A contractor was paid $910,000 to construct a new warehouse. What is the total cost?

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Solution Summary

This solution shows the exact calculation for the total costs for Fast Delivery Company, who acquired land and built a new construction for business. The total cost is given and all calculations are broken down.

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Here's how you calculate it:

Initial cost land ($30,000 + 270,000) 300,000
Plus: Legal fees 1,425
...

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