Question

​McArthur, Inc. plans to develop a shopping center. In the first​ quarter, the following amounts were​ spent: Acquisition of land $ 18 comma 000 Surveys and legal fees 1 comma 300 Land clearing 500 Fencing 9 comma 000 Install lighting and signage 13 comma 060 What amount should be recorded as the land improvements​ cost?

Answer 1

$22,060

Step-by-step explanation:

Calculation for the amount that should be recorded as the land improvements​ cost?

Using this formula

Land improvement cost = Cost of installation lighting and signage +Cost of fencing

Let plug in the formula

Land improvement cost=$13,060 + $9,000

Land improvement cost=$22,060

Therefore the amount that should be recorded as the land improvements​ cost will be $22,060