Cost of Land: The cost of land includes the following costs: Purchase price of land Attorney fees Real estate agent commission Title Recording fees Additional expenses : Clearing Filling and leveling of land Removing of old buildings To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

Question

Airport Parking incurred the following costs to acquire land, make land improvements, and construct a small building. Select from the dropdown menu how each cost is to be classified as either Land, Land improvements, building, or other. Purchased three acres of land Paid delinquent real estate taxes on the land Additional dirt and bulldozing Title acquisition on the land acquisition Fence around the perimeter of the property Pavement of parking lot Lighting for the parking lot Building permit for the building Architect's fees for the design of the building Materials and labor to construct the building Shrubs and landscaping Cost of razing and removing an unwanted building on the purchased land

Answer 1

Question

Chapter 10, Problem 10.2EX

(a)

To determine

Cost of Land: The cost of land includes the following costs:

Purchase price of land

Attorney fees

Real estate agent commission

Title

Recording fees

Additional expenses :

Clearing

Filling and leveling of land

Removing of old buildings

To explain: whether the tree cutting, land clearing, and grading costs of constructing the ski slopes should be debited to the land account.

(b)

To determine

To explain: whether such costs debited to land account should be depreciated.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Airport Parking incurred the following costs to acquire land, make land improvements, and construct a small building. Select from the dropdown menu how each cost is to be classified as either Land, Land improvements, building, or other. Purchased three acres of land Paid delinquent real estate taxes on the land Additional dirt and bulldozing Title acquisition on the land acquisition Fence around the perimeter of the property Pavement of parking lot Lighting for the parking lot Building permit for the building Architect's fees for the design of the building Materials and labor to construct the building Shrubs and landscaping Cost of razing and removing an unwanted building on the purchased land

Airport Parking incurred the following costs to acquire land, make land improvements, and construct a small building. Select from the dropdown menu how each cost is to be classified as either Land, Land improvements, building, or other. Group of answer choices Purchased three acres of land Paid delinquent real estate taxes on the land Additional dirt and bulldozing Title acquisition on the land acquisition Fence around the perimeter of the property Pavement of parking lot Lighting for the parking lot…

Identify the following costs that could be capitalized on the firm’s balance sheet (included in property, plant, and equipment). New windshield wiper blades on the company’s truck New sidewalks in front of the firm’s factory Freight expenses for new equipment installed in the factory Installation costs for the new equipment Realtor’s fees associated with land purchase Minor engine repair on the truck Engine replacement on the truck Razing or demolishing a building on newly acquired land Design costs for a new building Value-added tax Construction expenses associated with building a garage Costs required to bring the equipment to its intended location Administration and other general overhead costs Idle capacity Wasted materials, labour and other resources