On July 1, 2009, Larkin Co. purchased a $400,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2009 as follows: What would be the balance in the land account as of December 31, 2009?

Question

Quizplus · Accepted Answer

The balance in the land account will be the initial cost of $400,000 plus any additional costs incurred, minus any salvage proceeds received.

$400,000 + $50,000 + $27,000 - $5000 = $477,000

Therefore, the correct answer is C.