Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of grading and leveling land to be used for a new business site
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Question

Quizplus · Accepted Answer

The cost of grading and leveling land to be used for a new business site is classified as a cost of the land itself because it is necessary to prepare the land for its intended use, and it does not have a limited useful life.

Classify Each of the Following Costs Associated with Long-Lived Assets