Pink Corp. purchased a piece of land in 2022 for $1,000,000 and incurred the following additional costs: cost of clear the land, $ 36,000; cost of paving a new parking lot, $48, 000; cost of lighting for the new parking lot, $24,000. In addition to these costs, Pink Corp was able to sell the timber from clearing the land for $7,000. How much should Pink record in the Land and Land Improvement accounts for this purchase? Select one: a. Land: $1,036,000; Land Improvements: $72, 000 b. Land: $993,000; Land Improvements: $108, 000 c. Land: $1, 103,000; Land Improvements: $0 d. Land: $1,000,000; Land Improvements: $ 108,000 e. Land: $1,029,000; Land Improvements: $72,000
Pink Corp. purchased a piece of land in 2022 for $1,000,000 and incurred the following additional costs: cost of clear the land, $ 36,000; cost of paving a new parking lot, $48, 000; cost of lighting for the new parking lot, $24,000. In addition to these costs, Pink Corp was able to sell the timber from clearing the land for $7,000. How much should Pink record in the Land and Land Improvement accounts for this purchase? Select one: a. Land: $1,036,000; Land Improvements: $72, 000 b. Land: $993,000; Land Improvements: $108, 000 c. Land: $1, 103,000; Land Improvements: $0 d. Land: $1,000,000; Land Improvements: $ 108,000 e. Land: $1,029,000; Land Improvements: $72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Pink Corp. purchased a piece of land in 2022 for $1,000,000 and incurred the following additional costs: cost of clear the land, $ 36,000; cost of paving a new parking lot, $48, 000; cost of lighting for the new parking lot, $24,000. In addition to these costs, Pink Corp was able to sell the timber from clearing the land for $7,000. How much should Pink record in the Land and Land Improvement accounts for this purchase? Select one: a. Land: $1,036,000; Land Improvements: $72, 000 b. Land: $993,000; Land Improvements: $108, 000 c. Land: $1, 103,000; Land Improvements: $0 d. Land: $1,000,000; Land Improvements: $ 108,000 e. Land: $1,029,000; Land Improvements: $72,000
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