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Pink Corp. purchased a piece of land in 2022 for $1,000,000 and incurred the following...

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Accounting

Pink Corp. purchased a piece of land in 2022 for $1,000,000 and incurred the following additional costs: cost of clear the land, $36,000; cost of paving a new parking lot, $48,000; cost of lighting for the new parking lot, $24,000. In addition to these costs, Pink Corp was able to sell the timber from clearing the land for $7,000. How much should Pink record in the Land and Land Improvement accounts for this purchase?
Select one:
a. Land: $993,000; Land Improvements: $108,000
b. Land: $1,029,000; Land Improvements: $72,000
c. Land: $1,000,000; Land Improvements: $108,000
d. Land: $1,103,000; Land Improvements: $0
e. Land: $1,036,000; Land Improvements: $72,000
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