Which one of the costs below should be included as part of the cost of land?
A)Razing an old building.
B)Cost of a building permit.
C)Cost of driveways.
D)Shrubs and trees with limited lives.

Question

Quizplus · Accepted Answer

Razing an old building is a cost directly associated with preparing the land for its intended use, and therefore, should be included in the cost of the land. Building permits are related to construction on the land, not the land itself. Costs of driveways and landscaping (like shrubs and trees with limited lives) are typically considered improvements to the land rather than part of the land's purchase price.

Which One of the Costs Below Should Be Included as Part