All of the Following Costs Would Be Included in the Land

question 98

Multiple Choice

All of the following costs would be included in the Land account when land is purchased EXCEPT ________.

• A)the costs associated with paving a parking lot on the land
• B)the realtor's fee
• C)costs to prepare the land for use such as removing a tree stump
• D)the fee paid to transfer title to the land

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Definitions:

Independent Appraisal

The process of determining the value of an asset, property, or company by a professional appraiser who is not influenced by any party involved in the transaction.

Retires

The process of removing an asset from the company’s balance sheet because it has been disposed of or is no longer in use.

Capital Account Balance

Capital Account Balance is the net result of public and private international investments flowing in and out of a country, but it also refers to an individual's or company's financial statement showing the equity ownership and contributed capital.

Withdrawal

Withdrawal refers to the act of taking money out of a financial account, or the removal of participation or investment in a venture or agreement.