These expenditures were incurred by Shumway Ltd. in purchasing land: cash price $54,820; legal fees $2,210; removal of old building $5,170; the cost of clearing and grading $4,430; installation of fence $2,660. What is the cost of the land?
Cost of Land:
Accounting for land is different than the other assets because depreciation is not charged against land. Cost of land includes all the costs which has been incurred to make the land ready to use.
Answer and Explanation: 1
Cost of land will include all the costs which has been incurred to make the land available to use.
It includes price of land, legal fee, removal of...
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fromChapter 3 / Lesson 10
Learn the definition of fixed assets and examine their importance. Explore the various types of fixed assets, identify their characteristics, and see examples.