Which of the following would not be included in the acquisition cost of a building?
A) An apportioned amount of the purchase cost when both the land and building are acquired in a basket purchase.
B) The cost of putting new windows and doors in the building before it opens for operations.
C) The cost of paving the parking lot and outdoor lighting in the lot.
D) The cost of paying an architect to design the re-modelling modiﬁcations of the building before the store opens.

Question

Quizplus · Accepted Answer

The acquisition cost of a building includes all costs necessary to make the building ready for its intended use, such as purchase cost, renovation, and design fees. However, costs for paving a parking lot and outdoor lighting are considered land improvements, not part of the building's acquisition cost.

Which of the Following Would Not Be Included in the Acquisition