Chapter 9, Problem 3Q

(a)

To determine

Type of costs: The cost of land and building includes the following costs:

• Purchase price of land
• Attorney fees
• Real estate agent commission
• Title
• Recording fees
• Legal fees
• Architect fees
• Building construction costs
• Interest costs related to the construction
• Sale of salvaged materials
• Additional expenses :
  • Clearing
  • Filling and leveling of land
  • Removal of old buildings

To identify: the type costs may be incurred for using only the land

(b)

To determine

To identify: the type costs may be incurred for using both the land and the building