All of the following costs would be included in the Land account when land is purchased EXCEPT ________.
A)the costs associated with paving a parking lot on the land
B)the realtor's fee
C)costs to prepare the land for use such as removing a tree stump
D)the fee paid to transfer title to the land

Question

Quizplus · Accepted Answer

The costs associated with paving a parking lot on the land would be included in the Land Improvements account, not the Land account. The Land account only includes the cost of acquiring the land, any costs directly associated with its acquisition, and any costs to prepare the land for its intended use.

All of the Following Costs Would Be Included in the Land