Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. fte $5,000 cost is an addition to the basis of the land.

Name: Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. fte $5,000 cost is an addition to the basis of the land.
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Question

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Expenditures chargeable to the capital account are additions to the basis.

Terry Trumbull Purchased a Tract of Land