Question - The following 4 costs were incurred for Celadon Inc. to acquire and prepare land for a new parking lot:
Purchase price of land: $950,000
Cost to clear the land: $55,000
Cost of paving the lot: $35,000
Cost of lighting the parking lot: $12,000
How much should be recorded in the Land Improvements account on Celadon Inc.'s balance sheet?
a. $47,000
b. $90,000
c. $102,000
d. $1,052,000