Minor Company purchased land which is being prepared for the construction of a new office building.Which of the following should be included in the cost of the land?

Question

Quizplus · Accepted Answer

The cost of removing an old building and clearing and grading the land are necessary expenses in preparing the land for the new office building and should be included in the cost of the land. The cost of the fence which surrounds the property is not necessary for the construction of the office building and therefore should not be included in the cost of the land.

Minor Company Purchased Land Which Is Being Prepared for the Construction