Which of the following would not represent an acquisition cost to be added to the purchase price of building:
A) Sales Tax.
B) Cost of grading the land.
C) Capital repairs to get the building ready for occupancy.
D) Renovations that would extend the life of the building.

Question

Quizplus · Accepted Answer

Grading the land is not considered an acquisition cost as it is a cost incurred before the building is obtained. Acquisition costs are costs incurred to obtain the building, such as sales tax, capital repairs, and renovations.

Which of the Following Would Not Represent an Acquisition Cost