The cost of land to be used in the operations of a business should include all of the following except
A) commissions related to the acquisition of the land.
B) property taxes to the date of acquisition assumed by the purchaser.
C) excavation in preparation for the construction of a new building on the land.
D) the cost of surveys of the land.

Question

Quizplus · Accepted Answer

Excavation in preparation for the construction of a new building on the land is an expense in construction costs and not a cost related to the acquisition of the land. The other options, including commissions related to the acquisition of the land, property taxes to the date of acquisition assumed by the purchaser, and the cost of surveys of the land, are all expenses that should be included in the cost of land for the operations of a business.

The Cost of Land to Be Used in the Operations