A company has purchased a trust of land and expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. Under GAAP, the land should be reported as
A) a long-term investment.
B) an intangible asset.
C) property, plant, and equipment.
D) land expense.

Question

Quizplus · Accepted Answer

Land held for future use is classified as a long-term investment under GAAP.

A Company Has Purchased a Trust of Land and Expects