Question

Acer Inc. plans to develop a shopping center. In the 1st quarter, the following amounts were spent:Acquisition of land-$15,000Survey/legal fees-$1,200Land clearing-$300Fencing-$4,000Install lighting/signage-$1,160What amount should be recorded as the cost of the land in the corporation's books?

Answer 1

$16,500

Explanation:

Data provided in the question:

Amount spent for Acquisition of land = $15,000

Amount spent for Survey/legal fees = $1,200

Amount spent for Land clearing = $300

Amount spent for Fencing = $4,000

Amount spent for Install lighting/signage = $1,160

Now,

The cost of the land in the corporation's books will be

= Acquisition of land + Survey/legal fees + Land clearing

= $15,000 + $1,200 + $300

= $16,500