Multiple Choice Question 59

Culver Corporation purchased land for a new parking lot for $125000. The paving cost $181000 and the lights to illuminate the new parking area cost $68000. Which of the following statements is true with respect to these additions?

$249000 should be debited to Land Improvements.

$374000 should be debited to the Land account.

$306000 should be debited to the Land account.

$374000 should be debited to Land Improvements.