Durango,Inc.purchased a parcel of land for $450,000.It paid attorney fees of $3,000 to verify title to the land.In addition,it paid a broker's fee of $7,500 to help find a suitable parcel of land.This parcel of land should be recorded in the accounting records for:

Question

Quizplus · Accepted Answer

Long-lived assets are recorded for all of the costs that are reasonable and necessary to place them in service for their intended use.In this case,the attorney fees and brokerage fees are reasonable and necessary costs incurred in order to acquire the land and place it in service for its intended use.