Revson Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000; broker’s fees, $6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700; grading, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500. List the items and amounts that should be included in the Land account.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 42P
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Revson Corporation purchased land adjacent to its plant to improve access for trucks making deliveries.

Expenditures incurred in purchasing the land were as follows: purchase price, $55,000; broker’s fees,

$6,000; title search and other fees, $5,000; demolition of an old building on the property, $5,700;

grading, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting

$7,500; signs, $1,500.

List the items and amounts that should be included in the Land account.

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