Acme Investments plans to develop a shopping center. In the first quarter, they spent the following amounts: What amount should be recorded as the land improvements cost?

Question

Acme Investments plans to develop a shopping center. In the first quarter, they spent the following amounts:  What amount should be recorded as the land improvements cost?

Quizplus · Accepted Answer

Land improvements cost includes any costs associated with enhancing the land for its intended use, such as grading, filling, draining, and landscaping. The only expenditure in the given list that could potentially relate to land improvements is the $7,200 payment to the grading contractor. Therefore, that amount should be recorded as the land improvements cost.

Acme Investments Plans to Develop a Shopping Center