- Design Furniture purchased land paying $70,000 cash and signing a $300,000 loan agreement. In addition, Design paid solicitors’ fees of $2,500, a survey fee of $2,000 and $8,000 to level the land and remove an unwanted building. Design then constructed an office at a cost of $700,000. It also paid $55,000 for a fence around the property, $18,000 for a sign near the entrance and $10,000 for special lighting of the grounds.
Determine the cost of land, land improvements and building. [8 marks]
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