Title: 
Headings: 

Content: (1) The
cash purchase price
            (2) Closing costs such as title and
attorney's fees
            (3) Real estate brokers’ commissions
            (4) Accrued property taxes and other
liens on the land assumed by the purchaser
§        
All necessary costs incurred in making land ready for its intended useincrease
(debit) the Land account. §        
Land
improvements– Land improvements are structural additions made to land such
as driveways, parking lots, fences, and underground sprinklers. ·        
The cost of land improvements includes all
expenditures necessary to make the improvements ready for their intended
use. ·        
The cost of a new company parking lot includes
the amount paid for paving, fencing, and lighting. ·        
The total of all these costs would be debited to
Land Improvements. ·        
Because land improvements have limited useful
lives, their costs are expensed (depreciated) over their useful lives. §        
Buildings– Buildings are facilities used in operations, such as stores, offices,
factories, warehouses, and airplane hangers. ·        
All necessary expenditures relating to the
purchase or construction of a building are charged to the building account. ·        
When a building is purchased, such costs
include the purchase price, closing costs (attorney's fees, title insurance,
etc.), and real estate broker's commissions.