Question

In: Accounting

Land improvements are: - included in the cost of land account - expensed in the period...

Land improvements are:

- included in the cost of land account

- expensed in the period incurred

- assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation

- also called desket purchases

- assets that increase the usefulness of land, and like land, not depreciated

Solutions

Expert Solution

Correct answer is C - assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation

Land improvements are enhancements to the land to make it more usable. A land improvement is the alteration to the land to make it more usable. It improves the usefulness of the land. Improvements to the land have a limited life and it can be depreciated unlike the land.

Examples of Land improvements are parking lots, fences, and lighting systems.

Land improvements are completely separate from land . Land improvements are considered different asset than the land. The amount spent on improving the land is not added to the cost of land. It is also not expensed in the period incurredIt gets treated as a separate asset and is depreciated over its useful life .

Thus, Land improvements are assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation

ekkarill92 answered 1 year ago
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