Classify each of the following costs associated with long-lived assets as one of the following:
-Cost assessed by city for paving a public street that borders land on which a new business location will be constructed
A)Land improvements
B)Buildings
C)Land
D)Machinery and equipment

Question

Quizplus · Accepted Answer

The cost assessed by the city for paving a public street is related to the land on which the new business location will be constructed. Therefore, it is classified as a land cost. It is not related to any improvement or machinery that will be used in the construction of the building.

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