Asked by nadezhda kurilov on May 29, 2024
Verified
The cost of land includes all of the following except
A) real estate brokers' commissions.
B) closing costs.
C) accrued property taxes.
D) parking lots.
Closing Costs
Fees and expenses, excluding the purchase price, that are incurred during the process of transferring property ownership.
Accrued Property Taxes
Property taxes that have been incurred but not yet paid, recorded as a liability on the balance sheet.
Parking Lots
Designated areas where vehicles can be parked, often found near businesses, public spaces, or commercial buildings.
- Determine the cost components and proper accounting treatment for land purchases and related expenditures.
Verified Answer
BR
Bader RostomMay 30, 2024
Final Answer :
D
Explanation :
The cost of land includes real estate brokers' commissions, closing costs, and accrued property taxes, as these are expenses incurred during the purchase of the land. However, parking lots are typically considered improvements to the land rather than part of the cost of acquiring the land itself.
Learning Objectives
- Determine the cost components and proper accounting treatment for land purchases and related expenditures.