Acquisition cost is the total amount needed to purchase the property, including the down payment, loan amount, and any allowable buyer-paid closing costs. If down payment is $40,000, loan amount is $260,000, and buyer-paid closing costs are $8,000, what is the acquisition cost?

Acquisition cost is the total amount needed to purchase the property, including the down payment, loan amount, and any allowable buyer-paid closing costs. If down payment is $40,000, loan amount is $260,000, and buyer-paid closing costs are $8,000, what is the acquisition cost?

• A. 308000
• B. 336000
• C. 300000
• D. 320000

Answer: (A)

Acquisition cost is the total funds required to complete the purchase, including what the buyer puts in as a down payment, the financed loan amount, and the closing costs paid by the buyer. So you add them all together: 40,000 (down payment) + 260,000 (loan amount) + 8,000 (buyer-paid closing costs) = 308,000. Therefore, the acquisition cost is 308,000.

Acquisition cost is the total funds required to complete the purchase, including what the buyer puts in as a down payment, the financed loan amount, and the closing costs paid by the buyer. So you add them all together: 40,000 (down payment) + 260,000 (loan amount) + 8,000 (buyer-paid closing costs) = 308,000. Therefore, the acquisition cost is 308,000.