Which of the following costs associated with a land purchase is not a component of the land cost reported on a balance sheet?
A)The payment of delinquent property taxes.
B)The incurrence of legal fees.
C)The cost of title insurance.
D)The land's appraised value.

Question

Quizplus · Accepted Answer

The land's appraised value is not a cost incurred in the purchase of the land; it is an estimate of the land's market value and does not affect the cost reported on the balance sheet.

Which of the Following Costs Associated with a Land Purchase