Ch 9 Acquisition Costs of Realty

Question 1

Money borrowed to pay building contractor (signed note)

Answer 1

note payable

Question 2

payment for construction form note proceeds

Answer 2

building

Question 3

cost of land fill and clearing

Answer 3

land

Question 4

delinquent real estate taxes on property assumed by purchaser

Answer 4

land

Question 5

premium on 6-month insurance policy during construction

Answer 5

building

Question 6

refund of 1 month insurance premium because construction completed early

Answer 6

building

Question 7

architect’s fee on building

Answer 7

building

Question 8

cost of real estate purchased as a plant site

Answer 8

land

Question 9

commission fee paid to real estate agency

Answer 9

land

Question 10

installation of fences around property

Answer 10

land improvement

Question 11

cost of razing and removing building

Answer 11

land

Question 12

proceeds from salvage of demolished building

Answer 12

land

Question 13

interest paid during construction on money borrowed for construction

Answer 13

building

Question 14

cost of parking lots and driveways

Answer 14

land improvement

Question 15

cost of trees and shrubbery planted (permanent in nature)

Answer 15

land

Question 16

excavation costs for new building

Answer 16

building