Which of the Following Costs Associated with a Land Purchase

question 30

Multiple Choice

Which of the following costs associated with a land purchase is not a component of the land cost reported on a balance sheet?

• A)The payment of delinquent property taxes.
• B)The incurrence of legal fees.
• C)The cost of title insurance.
• D)The land's appraised value.

Grasp the concept and significance of authorized, issued, and outstanding shares.

Differentiate between private and public corporations and their characteristics.

Recognize the process and accounting treatments for issuing stock above or at par value.

Understand the calculation and significance of retained earnings within stockholders' equity.

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Definitions:

Conditions Precedent

Legal terms that must be met before a party is required to perform under a contract.

Executory Conditions

Provisions in a contract that require certain actions to be performed before an obligation becomes absolute.

Concurrent Conditions

In a contract, terms under which each party’s performance is conditioned on the performance of the other; occur only when the parties are required to perform for each other simultaneously.

Express

Implies clear and direct communication or conveyance of an idea, intention, or item without any ambiguity.