1- Which of the following asset categories would include the cost of clearing land and removing unwanted buildings?

A) land B) buildings C) land improvements D) machinery and equipment

2- Which of the following should be included in the cost of land?

A) cost to build sidewalks on the land B) cost to clear the land of old buildings C) cost of installing signage D) cost of installing fences

3- Broward Developing Company plans to develop a shopping center. In the first quarter, the following amounts were spent:

Acquisition of land $24,000

Surveys and legal fees 1500

Land clearing 1100

Fencing 6000

Install lighting and signage 1860

What amount should be recorded as the cost of the land in the company's books?

A) $32,600 B) $26,600 C) $28,460 D) $31,100

4- Trump & Obama Development Company plans to develop a shopping center. In the first quarter, the following amounts were spent:

Acquisition of land $21,000

Surveys and legal fees 1500

Land clearing 1000

Fencing 6000

Install lighting and signage 16,060

What amount should be recorded as the land improvements cost? A) $7000 B) $8500 C) $22,060 D) $2500

5- The cost of a building depends on whether the company is constructing the building or is acquiring an existing one.

6- When constructing a building for plant operations, payments for materials, labor, and miscellaneous costs are recorded as expenses.