Incidental costs incurred in the purchase of land that are charged to Land Improvements will affect net income at some future time.

Question

Quizplus · Accepted Answer

Incidental costs incurred in the purchase of land that are charged to Land Improvements are capitalized as a part of the cost of the land. These costs will therefore affect net income in future periods as depreciation is recorded on the capitalized costs, which reduces net income.

Incidental Costs Incurred in the Purchase of Land That Are