Acme Investments plans to develop a shopping center.In the first quarter,they spent the following amounts: $$\begin{array} { l r }
\text { Purchase land } & \$ 100,000 \
\text { Surveys and legal fees } & 1,200 \
\text { Land clearing } & 5,000 \
\text { Install fences around the property } & 4,600 \
\text { Install lighting and signage } & 2,600
\end{array}$$
-What amount should be recorded as the land cost?

Question

Acme Investments plans to develop a shopping center.In the first quarter,they spent the following amounts: $$\begin{array} { l r } 
\text { Purchase land } & \$ 100,000 \
\text { Surveys and legal fees } & 1,200 \
\text { Land clearing } & 5,000 \
\text { Install fences around the property } & 4,600 \
\text { Install lighting and signage } & 2,600
\end{array}$$ 
-What amount should be recorded as the land cost?

Quizplus · Accepted Answer

The land cost includes the purchase price of the land ($100,000), surveys and legal fees ($1,200), and land clearing ($5,000), totaling $106,200. Fences, lighting, and signage are improvements and not part of the initial land cost.

Acme Investments Plans to Develop a Shopping Center -What Amount Should Be Recorded as the Land Cost? A)

Acme Investments Plans to Develop a Shopping Center -What Amount Should Be Recorded as the Land Cost?
A)