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A corporation issued debt to purchase 10 acres of land for development purposes. Expenditures related to this purchase are as follows: Description Amount Purchase price
A corporation issued debt to purchase 10 acres of land for development purposes. Expenditures related to this purchase are as follows: Description Amount Purchase price $1,000,000 Real estate taxes in arrears 15,000 Debt issuance costs 2,000 Attorney feetitle search on land 5,000 The company should record its acquisition of the land in its financial statements at a value of a) $1,000,000. b) $1,015,000. c) $1,020,000. d) $1,022,000.
Why is debt issuance cost not included in the purchase of land?
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