Asked by Brianna Sparks on May 31, 2024
Verified
Costs of government permits required to develop land for a new business location
A) Buildings
B) Machinery and equipment
C) Land
D) Land improvements
Government Permits
Official permissions granted by governmental bodies that allow individuals or companies to conduct certain activities that would otherwise be prohibited.
Develop Land
The process of making land suitable for construction or other use, which may involve clearing, grading, and installing infrastructure such as roads and utilities.
- Attain proficiency in and utilize the proper classification of expenditures related to long-lived assets.
Verified Answer
DG
Denisse GarcíaJun 01, 2024
Final Answer :
C
Explanation :
Costs of government permits required to develop land for a new business location are directly associated with the preparation or development of the land itself, thus classified under Land costs. These costs are necessary to prepare the land for its intended use and are capitalized as part of the land's cost.
Learning Objectives
- Attain proficiency in and utilize the proper classification of expenditures related to long-lived assets.