Questions: Which of the following should be included in the cost of land? A. cost of installing fences B. cost to clear the land of old buildings C. cost of installing signage D. cost to build sidewalks on the land

The answer is B: cost to clear the land of old buildings.

Explanation for each option:

A. Cost of installing fences - This is typically considered an improvement to the land and not part of the initial cost of acquiring the land itself. Therefore, it is not included in the cost of land.

B. Cost to clear the land of old buildings - This is included in the cost of land because it is necessary to prepare the land for its intended use. Clearing old buildings is a direct cost associated with making the land usable.

C. Cost of installing signage - Similar to fences, signage is considered an improvement or an addition to the land, not part of the initial cost of acquiring the land.

D. Cost to build sidewalks on the land - Sidewalks are improvements to the land and are not included in the initial cost of the land. They are considered part of the development or improvement costs.

In summary, the cost to clear the land of old buildings is included in the cost of land because it is a necessary step to prepare the land for its intended use.