What should be included in the cost of land? - ProProfs Discuss
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What should be included in the cost of land?

What should be included in the cost of land?<br/>

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This question is part of Accounting 201 - Chapter 7
Asked by Jc, Last updated: Nov 29, 2020

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2 Answers

Anthony Paul Bonadio

Anthony Paul Bonadio

Its kind of my job to give answers

Anthony Paul Bonadio
Anthony Paul Bonadio, Teacher, MCA, PhD, Toledo

Answered Jan 03, 2019

The cost of land should include the cost of removing unwanted buildings and the cost of grading and clearing the land. When you’re buying land for a business, you have to take into account many things.

Once you actually settle on a piece of land, you need to make sure that you can pay to have it cleared of unwanted buildings and to make it usable. You can’t just build on any piece of land, unfortunately.

This means that you have to make sure you have the money not only to buy the land, but to make all the necessary changes to the land. The best way to do that is to do your research ahead of time.

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Anika Nicole

Anika Nicole

Content Writer, Teacher

Anika Nicole
Anika Nicole, Wordsmith, PG In Journalism, New York

Answered May 31, 2018

The cost of land includes various factors like the purchase price of the asset and overall necessary expenditure of that asset to prepare it for future use.

Costs of grading and clearing the land and Costs of removing an unwanted building. Both the costs vary from land to land and vendor to vendor as they depend on the size of the area. There are some other factors which affect the overall cost of a land. time of year, geographical location, and accessibility of that land.

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