Minor Company purchased land and which is being prepared for the construction of a new office building. Which of the following should be included in the cost of the land?

Question

Quizplus · Accepted Answer

The cost of land includes all expenditures made to acquire the land and prepare it for its intended use, such as the cost of removing an old building and clearing and grading the land. The cost of a fence is not included as it is considered a land improvement.

Minor Company Purchased Land and Which Is Being Prepared for the Construction