Cost of land
Purchase price, title insurance, commissions, property taxes (delinquent), cost of removing old building, and cost of grading.
Cost of Equipment
Purchase price, shipping, freight & handling, insurance during shipping, special foundations, and trial runs (including any materials used).
Parking lots, driveways, private roads, fences, lawn and gardening sprinkler systems.
Journey Entry for exchanges
Debit: Equipment (new) (calculated at fair value + any cash).
Debit: Accumulated Depreciation
Debit: Possibly a loss/cash
Credit: Equipment (old) (original price).
Credit: Possibly a gain/cash
Exchange lacks commercial susbstance
No gain or loss is allowed.