Fullerton Waste Management's Land and Warehouse Acquisition Details
Fullerton Waste Management's Land and Warehouse Acquisition
Fullerton Waste Management purchased land and a warehouse for $640,000. Besides the purchase price, the company incurred additional expenditures related to the acquisition. These expenditures included a broker's commission of $24,000, fees for title search and title transfer amounting to $2,800, and the installation of fencing around the property costing $6,000.
Cost Basis Calculation
The total cost of the land and warehouse acquisition is calculated by adding the purchase price to the additional expenditures. Therefore, the breakdown is as follows:
- Purchase price of warehouse and land: $640,000
- Broker's commission: $24,000
- Fees for title search and title transfer: $2,800
- Installation of fencing around the property: $6,000