The Following Costs Were Incurred to Acquire and Prepare Land

question 40

Multiple Choice

The following costs were incurred to acquire and prepare land for a new parking lot: purchase price of land, $900,000; cost to clear the land, $40,000; cost of paving, $35,000; and cost of lighting for the parking lot, $20,000. How much should be recorded in the Land Improvements account?

• A)$20,000
• B)$35,000
• C)$55,000
• D)$40,000