McArthur Company Plans to Develop a Shopping Center What Amount Should Be Recorded as the Land Improvements Cost

question 200

Multiple Choice

McArthur Company plans to develop a shopping center.In the first quarter,the following amounts were spent: $$\begin{array} { | l | r | } \hline \text { Acquisition of land } & \$ 21,000 \\\hline \text { Surveys and legal fees } & 1500 \\\hline \text { Land clearing } & 1000 \\\hline \text { Fencing } & 6000 \\\hline \text { Install lighting and signage } & 16,060 \\\hline\end{array}$$ What amount should be recorded as the land improvements cost?

• A) $7000
• B) $8500
• C) $22,060
• D) $2500

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Definitions:

Range

The difference between the highest and lowest values in a data set, used as a measure of statistical dispersion.

Natural Causes

Factors that affect events or conditions based on processes inherent to the natural world, as opposed to human-made influences.

Assignable Causes

Factors identified as reasons for variation in a process, which can be isolated and where corrective action can be applied.

Process Capability Ratio

A statistical measure that evaluates the ability of a production process to produce output within specified limits.