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SOVA2 [1]
3 years ago
14

Patrick Enterprises recently installed a parking lot. The paving costs were $38,750, and the lighting costs were $20,000. In add

ition, the company entered into a $1,000 annual agreement with Romero Cleaning to maintain the parking lot for 3 years. What is the total cost to be included in the Land Improvements account
Business
1 answer:
weeeeeb [17]3 years ago
5 0

Answer:

$58,750

Explanation:

Paving Costs             $38,750

Lighting Costs           $20,000

Total cost to be included in land improvement account $58,750

Please note that cleaning agreement cost is revenue expenditure,therefore should be charged to profit and loss account not in land improvement account.

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