Multiple Choice Question 59

Whispering Winds Corp. purchased land for a new parking lot for $150000. The paving cost $183000 and the lights to illuminate the new parking area cost $64000. Which of the following statements is true with respect to these additions?

$333000 should be debited to the Land account.

$397000 should be debited to Land Improvements.

$247000 should be debited to Land Improvements.

$397000 should be debited to the Land account.