Asked by Kiley Borowicz on Jul 06, 2024
Verified
Which of the following is included in the cost of land?
A) cost of paving a parking lot
B) brokerage commission
C) outdoor parking lot lighting attached to the land
D) fences on the land
Brokerage Commission
Brokerage Commission is the fee charged by a brokerage firm for facilitating transactions between buyers and sellers in financial markets.
Outdoor Parking
An uncovered parking area designated for vehicles, typically without a roof or enclosure.
Cost of Land
The total expenses involved in acquiring land and preparing it for use, including purchase price, closing costs, surveying fees, and any costs related to clearing or improving the property.
- Clarify the elements comprising acquisition costs in relation to property, plant, and equipment.
Verified Answer
YC
Yusmichel CanteroJul 09, 2024
Final Answer :
B
Explanation :
Brokerage commission is included in the cost of land as it is a cost necessary to acquire the land and prepare it for its intended use.
Learning Objectives
- Clarify the elements comprising acquisition costs in relation to property, plant, and equipment.