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The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. Determine how the following should
- The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. Determine how the following should be classified:
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| a. Money borrowed to pay building contractor (signed a note)
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| b. Payment for construction from note proceeds
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| c. Cost of land fill and clearing
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| d. Delinquent real estate taxes on property assumed by purchaser
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| e. Premium on 6-month insurance policy during construction
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| f. Refund of 1-month insurance premium because construction completed early
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| g. Architect's fee on building
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| h. Cost of real estate purchased as a plant site (land 200,000 and building 50,000)
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