Costs that should be charged to the land account include:
A)the cost of removing unwanted buildings.
B)paving the parking lot.
C)installing fences.
D)the cost of a sign.

Question

Quizplus · Accepted Answer

The cost of removing unwanted buildings should be charged to the land account because it increases the value of the land by creating an open space for future development. Paving the parking lot, installing fences and the cost of a sign are considered costs of improvements and should be charged to a separate account called Property, Plant, and Equipment.

Costs That Should Be Charged to the Land Account Include