Acme Investments Plans to Develop a Shopping Center -0 What Amount Should Be Recorded as the Land Improvements

question 150

Multiple Choice

Acme Investments plans to develop a shopping center.In the first quarter,they spent the following amounts: $$\begin{array} { l r } \text { Purchase land } & \$ 100,000 \\\text { Surveys and legal fees } & 1,200 \\\text { Land clearing } & 5,000 \\\text { Install fences around the property } & 4,600 \\\text { Install lighting and signage } & 2,600\end{array}$$
-0 What amount should be recorded as the land improvements cost?

• A) $7,200
• B) $101,200
• C) $46,200
• D) $106,200

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Definitions:

Inventory Holdings

The quantity of goods and materials on hand at a particular period, reflecting a company's inventory levels.

Fixed Order Costs

Expenses that do not change with the quantity of inventory ordered, such as delivery charges or processing fees.

Purchase Price

The amount paid to buy a good, service, or asset.

Collection Period

The average number of days it takes a company to collect payments after a sale has been made.