Fresh n' Fit Cuisine purchased land and a building for $320,000 so that it could open a new restaurant. The building's fair market value at the time of purchase was $220,000. In addition, the following costs were incurred prior to the restaurant's opening: How much will be recorded as land improvements?

Question

Fresh n' Fit Cuisine purchased land and a building for $320,000 so that it could open a new restaurant. The building's fair market value at the time of purchase was $220,000. In addition, the following costs were incurred prior to the restaurant's opening:  How much will be recorded as land improvements?

Quizplus · Accepted Answer

Land improvements include any enhancements made to the land that increase its value, such as adding sidewalks, parking lots, or landscaping. The costs listed in the question do not include any of these types of improvements and instead relate to direct costs incurred in the process of purchasing the land and building. Therefore, none of the costs listed would be classified as land improvements.

Fresh N' Fit Cuisine Purchased Land and a Building for $320,000