A is corrent. Oak should capitalize all costs to place the land in its intended and useful state. The costs for the sewer lines, title search fee, land, and removal of the old building (less salvage) should all be included in the cost of the land. Therefore, the land should be recorded at $2,500 + $625 + $135,000 + $16,000 = $154,125.
B is incorrect. Oak should capitalize all costs to place the land in its intended and useful state. The costs for the sewer lines, title search fee, land, and removal of the old building (less salvage) should all be included in the cost of the land. Therefore, the land should be recorded at $2,500 + $625 + $135,000 + $16,000 = $154,125.
B is incorrect. Oak should capitalize all costs to place the land in its intended and useful state. The costs for the sewer lines, title search fee, land, and removal of the old building (less salvage) should all be included in the cost of the land. Therefore, the land should be recorded at $2,500 + $625 + $135,000 + $16,000 = $154,125.
D is incorrect. Oak should capitalize all costs to place the land in its intended and useful state. The costs for the sewer lines, title search fee, land, and removal of the old building (less salvage) should all be included in the cost of the land. Therefore, the land should be recorded at $2,500 + $625 + $135,000 + $16,000 = $154,125.
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