Boat Services is a charter boat business located in the Florida Keys. During 2021 boat purchased a
Question:
Boat Services is a charter boat business located in the Florida Keys. During 2021 boat purchased a competitor’s charter boat business for $1,900,000 and obtained a variety of distinct assets including: 3 new boats, equipment and most importantly a waterfront property in an up-and-coming neighborhood. The property has a building already on it but it is old and run down, boat plans to demolish the building and construct a restaurant. The seller shared the below appraised values with boat noting what a great deal boat obtained when purchasing the entire property and all underlying assets for just $1,900,000.
After the above purchase but before starting the restaurant construction, Boat spent $81,000 as follows: $41,000 to knock down and remove the existing building, $12,000 to grade the land and remove trees in anticipation of the restaurant construction and $28,000 to repair existing damage to Boat #1 (Dive was aware of this damage at the time of purchase and factored it in to the purchase price).
What is the historical cost of the Land after considering all of the above information?
Group of answer choices
$1,539,000
$1,620,000
$1,551,000
$1,661,000
$1,580,000
$1,632,000
$1,673,000
$1,592,000
None of the answer choices provided are correct.
