Q27. Assume U.S.GAAAP (generally accepted accounting principles)applies unless otherwise noted.

During 2006 Ballantyne Corporation acquired a piece of land on which to build a new manufacturing facility and incurred the following costs relates! the following costs related to the purchase:

Purchase price $200,000

Brokerage fees $7,500

Legal fees $5,000

Tearing down old building $15，000

Property taxes $6,500

Ballantyne capitalized cost of the land for accounting purposes is closest to:

A. $200,006

B. $215,006

C. $227,066:

D. $234,000

答案和详解如下：

Q27.  C 07 Modular Level, I, Vol.3, PP.362-363   Study 5ession9-41.b

All costs incurred to prepare the asset for use may be capitalized 200,000+7,500_5,000+15,000=227,500.

Property taxes would bb a period expense and are therefore excluded.

a