Final answer:
The cost of land includes real estate brokers' commissions, closing costs, and accrued property taxes but does not include improvements like parking lots, which are separate capital expenditures.
Step-by-step explanation:
The cost of purchasing land involves a range of expenses, but there are particular costs that are typically included and some that are not. The costs that are customarily included are real estate brokers' commissions, which cover the services of professionals involved in the transaction, and closing costs, which are the various fees and expenses due at the conclusion of a real estate transaction. Accrued property taxes also form part of the acquisition cost as they are obligations that the new owner will assume responsibility for after the purchase.
However, the cost of land does not include improvements such as parking lots since these are considered separate assets that are attached to the land, not a part of the initial land purchase cost. Modifications or developments such as parking lots are typically considered capital expenditures that add value to the property after the purchase.