280 – Land

Fixed Assets

 

Synopsis

Account 280

Debits

Credits

  1. The cost of land purchases for use in the automobile business.

  2. The cost of legal fees, broker's commissions, and abstract and title fees to secure title.

  3. The cost of surveys.

  1. The total cost of land when sold.

 

 

Remarks:

This account represents the cost of land for use in the retailer activity.

 

Land not used in the automobile business should be included in Other Non-Automotive Assets (Account 296).

 

When land and buildings are purchased for a lump sum, an appraisal should be made to determine the value of the land.  The determined value of the land and the building(s) should be charged to the appropriate accounts.

 

Depreciable improvements, such as grading, paving, ditches, sewers, landscaping, etc., should be charged to a sub-account under Buildings and Improvements (Account 281).

Note: