This chapter lists the costs included for the acquisition of land. First is the purchase price, which is obviously included in the cost of the land. The reasons for including the other costs are not so obvious. For example, removing a building looks more like an expense.
Requirements
1. State why the costs listed in the chapter are included as part of the cost of the land.
2. After the land is ready for use, will these costs be capitalized or expensed?