Asked by Yassine Wydadi on May 17, 2024
Verified
The land cost initially reported on the balance sheet may include legal fees and title insurance.
Balance Sheet
A statement presenting a firm's financial position by detailing its assets, liabilities, and equity held by shareholders at a particular moment.
Legal Fees
Payments made to attorneys or law firms for legal services rendered.
Title Insurance
An insurance policy that protects property buyers and lenders against losses from defects in titles.
- Understand the components and costs that can be capitalized in the initial measurement of tangible and intangible assets.
Verified Answer
AB
Aditya BanerjeeMay 18, 2024
Final Answer :
True
Explanation :
Legal fees and title insurance are common costs incurred in the purchase of land, and are often included in the initial land cost reported on the balance sheet.
Learning Objectives
- Understand the components and costs that can be capitalized in the initial measurement of tangible and intangible assets.
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