Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of removing an existing building to ready land for use as a new business site
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Question

Quizplus · Accepted Answer

The cost of removing an existing building to ready land for use as a new business site is considered part of the land cost. This is because such costs are necessary to prepare the land for its intended use, and they are capitalized as part of the land's cost rather than being expensed.

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