Ayer Self Storage purchased land, paying $175,000 cash as a down payment and signing a $190,000 note
Question:
Ayer Self Storage purchased land, paying $175,000 cash as a down payment and signing a $190,000 note payable for the balance. Ayer also had to pay delinquent property tax of $3,500, title insurance costing $3,000, and $9,000 to level the land and remove an unwanted building. The company paid $59,000 to add soil for the foundation and then constructed an office building at a cost of $650,000. It also paid $55,000 for a fence around the property, $14,000 for the company sign near the property entrance, and $8,000 for lighting of the grounds. Determine the cost of Ayers land, land improvements, and building.
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