Hull Company acquires land for $86,000 cash. Additional costs are as follows: Hull will record the acquisition cost of the land as

Question

Hull Company acquires land for $86,000 cash. Additional costs are as follows:  Hull will record the acquisition cost of the land as

Quizplus · Accepted Answer

The acquisition cost of the land includes the purchase price plus any additional costs incurred to make the land ready for its intended use. In this case, the additional costs total $3,500 + $350 + $2,520 = $6,370. Therefore, the acquisition cost of the land is $86,000 + $6,370 = $89,370. Choice D is the correct answer.

Hull Company Acquires Land for $86,000 Cash