The Land account would include all of the following costs except
A) drainage costs.
B) the cost of building a fence.
C) title fees.
D) the cost of tearing down a building.

Question

Quizplus · Accepted Answer

The Land account includes costs directly associated with the purchase and preparation of land for its intended use, such as drainage costs, title fees, and costs related to clearing the land (like tearing down an existing building). However, the cost of building a fence is typically considered a Land Improvement and not included in the Land account, as it is not a necessary cost to prepare the land for its intended use but rather an enhancement.

The Land Account Would Include All of the Following Costs