{"id":47452,"date":"2025-11-19T14:06:08","date_gmt":"2025-11-19T14:06:08","guid":{"rendered":"https:\/\/certifeka-edu.com\/programs\/finance-for-strategic-managers-accounting-professional-certificate-3\/lessons\/lesson-7-application-of-the-historical-cost-principle-3\/"},"modified":"2025-11-19T14:06:08","modified_gmt":"2025-11-19T14:06:08","slug":"lesson-7-application-of-the-historical-cost-principle-3","status":"publish","type":"lesson","link":"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-7-application-of-the-historical-cost-principle-3\/","title":{"rendered":"Lesson 7: Application of the historical cost principle"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" width=\"96\" height=\"114\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1.png\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1.png 96w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1-10x12.png 10w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/04\/logos-png-01-296x57-1-42x50.png 42w\" sizes=\"auto, (max-width: 96px) 100vw, 96px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<h2>Lesson 7: Accounting For Fixed Assets<br \/>\n<\/h2>\n<h3>Application of the historical cost principle<br \/>\n<\/h3>\n<h5>In the following sections, we explain the application of the historical cost principle to each of the major classes of plant assets<\/h5>\n<p>\u00a0\t\t<\/p>\n<h3>Land<br \/>\n<\/h3>\n<h5>Land account Include all necessary costs incurred to make landready for its intended use .<\/h5>\n<h5>The cost of land includes:<\/h5>\n<ul>\n<li>\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" viewbox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M173.898 439.404l-166.4-166.4c-9.997-9.997-9.997-26.206 0-36.204l36.203-36.204c9.997-9.998 26.207-9.998 36.204 0L192 312.69 432.095 72.596c9.997-9.997 26.207-9.997 36.204 0l36.203 36.204c9.997 9.997 9.997 26.206 0 36.204l-294.4 294.401c-9.998 9.997-26.207 9.997-36.204-.001z\"><\/path><\/svg><br \/>\n\t\t\t\t\t\t\t\t\t\tThe cash purchase price,\n\t\t\t\t\t\t\t\t\t<\/li>\n<li>\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" viewbox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M173.898 439.404l-166.4-166.4c-9.997-9.997-9.997-26.206 0-36.204l36.203-36.204c9.997-9.998 26.207-9.998 36.204 0L192 312.69 432.095 72.596c9.997-9.997 26.207-9.997 36.204 0l36.203 36.204c9.997 9.997 9.997 26.206 0 36.204l-294.4 294.401c-9.998 9.997-26.207 9.997-36.204-.001z\"><\/path><\/svg><br \/>\n\t\t\t\t\t\t\t\t\t\tClosing costs such as title and attorney&#8217;s fees\n\t\t\t\t\t\t\t\t\t<\/li>\n<li>\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" viewbox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M173.898 439.404l-166.4-166.4c-9.997-9.997-9.997-26.206 0-36.204l36.203-36.204c9.997-9.998 26.207-9.998 36.204 0L192 312.69 432.095 72.596c9.997-9.997 26.207-9.997 36.204 0l36.203 36.204c9.997 9.997 9.997 26.206 0 36.204l-294.4 294.401c-9.998 9.997-26.207 9.997-36.204-.001z\"><\/path><\/svg><br \/>\n\t\t\t\t\t\t\t\t\t\tReal estate brokers&#8217; commissions,\n\t\t\t\t\t\t\t\t\t<\/li>\n<li>\n\t\t\t\t\t\t\t<svg aria-hidden=\"true\" viewbox=\"0 0 512 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M173.898 439.404l-166.4-166.4c-9.997-9.997-9.997-26.206 0-36.204l36.203-36.204c9.997-9.998 26.207-9.998 36.204 0L192 312.69 432.095 72.596c9.997-9.997 26.207-9.997 36.204 0l36.203 36.204c9.997 9.997 9.997 26.206 0 36.204l-294.4 294.401c-9.998 9.997-26.207 9.997-36.204-.001z\"><\/path><\/svg><br \/>\n\t\t\t\t\t\t\t\t\t\tAccrued property taxes and other liens assumed by the purchaser\n\t\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<h5>When a company acquires vacant land, these costs include expenditures for clearing, draining, filling, and grading.<\/h5>\n<h5>Sometimes the land has a building on it that must be removed before construction of a new building.<\/h5>\n<h5>In this case, the company debits to the Land account all demolition and removal costs, less any proceeds from salvaged materials.<\/h5>\n<p>\u00a0\u00a0<br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"660\" height=\"360\" src=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land.png\" alt=\"\" srcset=\"https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land.png 969w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land-300x164.png 300w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land-768x419.png 768w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land-18x10.png 18w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land-600x328.png 600w, https:\/\/certifeka-edu.com\/wp-content\/uploads\/2025\/08\/Land-92x50.png 92w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\" \/><\/p>","protected":false},"comment_status":"open","ping_status":"closed","template":"","class_list":["post-47452","lesson","type-lesson","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lesson 7: Application of the historical cost principle - Certifeka-edu<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/certifeka-edu.com\/ar\/programs\/finance-for-strategic-managers-accounting-module\/lessons\/lesson-7-application-of-the-historical-cost-principle-3\/\" \/>\n<meta property=\"og:locale\" content=\"ar_AR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lesson 7: Application of the historical cost principle - Certifeka-edu\" \/>\n<meta property=\"og:description\" content=\"Lesson 7: Accounting For Fixed Assets Application of the historical cost principle In the following sections, we explain the application of the historical cost principle to each of the major classes of plant assets \u00a0 Land Land account Include all necessary costs incurred to make landready for its intended use . 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