Ivanhoe Company purchases land for $145000 cash. Ivanhoe assumes $5500 in property taxes due on the land. The title and attorney fees totaled $1800. Ivanhoe has the land graded for $3900. They paid $16000 for paving of a parking lot. What amount does Ivanhoe record as the cost for the land? $145000. $172200. $150700. $156200.

D. $156,200

Explanation:

Given

Cost of Land = $145000 cash.

Property Tax = $5500

Title and attorney fees = $1800.

Land grading = $3900.

Paving of a parking lot = $16000

The amount does Ivanhoe record as the cost for the land is calculated as follows;

First, we need to understand that only amount paid by Ivanhoe directly for the land will be considered.

In this case, amount paid for parking lot will not be included..

This is calculated by adding the following;

Cost of Land , Property Tax, Title and attorney fees and Land grading.

Hence, total amount = $145000 + $5500 + $1800 + $3900.

Total = $156,200

Ivanhoe holds a record of $156,200 as the cost for the land