Which of the following would not be included in the cost of land?
A)Cost of clearing unneeded building from land
B)Sewer assessment from local government
C)Cost of paving land for parking
D)Commission to real estate agent

Question

Quizplus · Accepted Answer

The cost of paving land for parking is not included in the cost of land; it is considered a land improvement and is therefore capitalized separately and typically depreciated over its useful life. Costs such as clearing buildings, sewer assessments, and commissions to real estate agents directly related to the acquisition of the land are capitalized as part of the land cost.

Which of the Following Would Not Be Included in the Cost