Falvik acquires an office building that it intends to lease. Purchase price: 1,200,000. It also pays 84,000 of property transfer taxes and 16,000 of legal fees, directly attributable to the acquisition (case data). Calculate the initial cost of the investment property.
- Purchase price
- 1,200,000
- Property transfer taxes
- 84,000
- Legal fees
- 16,000