Asked by Kiersten Deavy on May 08, 2024
Verified
Land improvements are:
A) Assets that increase the usefulness of land,and like land,are not depreciated.
B) Assets that increase the usefulness of land,but that have a limited useful life and are subject to depreciation.
C) Included in the cost of the land account.
D) Expensed in the period incurred.
E) Also called basket purchases.
Land Improvements
Enhancements to a piece of land to increase its value or usability, such as landscaping, fencing, and adding utilities, which are subject to depreciation.
Useful Life
The estimated period over which an asset is expected to be used by an entity before it is replaced or becomes obsolete.
Depreciated
The decrease in the value of an asset over time due to wear and tear or obsolescence.
- Identify and describe plant assets, encompassing their features and function in business activities.
Verified Answer
HH
Heather HarrisMay 10, 2024
Final Answer :
B
Explanation :
Land improvements are assets that are added to land to improve its usefulness, such as adding a driveway, fence or landscaping. Unlike land, land improvements have a limited useful life and are subject to depreciation. Therefore, they should be recorded as a separate asset and depreciated over their estimated useful life.
Learning Objectives
- Identify and describe plant assets, encompassing their features and function in business activities.