Questions: Geo Co. purchased a building for 400,000. In addition, Geo paid 35,000 for taxes and lawyer fees. Geo also paid 60,000 to modify the building, changing the layout specifically for Geo's needs. Geo should record the building at

Geo Co. purchased a building for 400,000. In addition, Geo paid 35,000 for taxes and lawyer fees. Geo also paid 60,000 to modify the building, changing the layout specifically for Geo's needs. Geo should record the building at

Transcript text: Fill in the Blank Question Geo Co. purchased a building for $\$ 400,000$. In addition, Geo paid $\$ 35,000$ for taxes and lawyer fees. Geo also paid $\$ 60,000$ to modify the building, changing the layout specifically for Geo's needs. Geo should record the building at \$ $\square$

Solution

Solution Steps

To determine the total cost at which Geo Co. should record the building, we need to sum up all the expenses related to acquiring and preparing the building for use. This includes the purchase price, taxes and lawyer fees, and the cost of modifications.

Step 1: Calculate Total Cost

To find the total cost at which Geo Co. should record the building, we sum the following expenses: \[ \text{Total Cost} = \text{Purchase Price} + \text{Taxes and Fees} + \text{Modification Cost} \] Substituting the values: \[ \text{Total Cost} = 400000 + 35000 + 60000 \]

Step 2: Perform the Calculation

Now, we perform the addition: \[ \text{Total Cost} = 400000 + 35000 + 60000 = 495000 \]