Asked by Abigail Aleman on Jul 06, 2024
Verified
Purchase price of land purchased for new business site
A) Buildings
B) Machinery and equipment
C) Land
D) Land improvements
Land
An asset representing the ground or property on which a business operates, not subject to depreciation.
Purchase Price
The amount of money paid to buy a good or service. In accounting, it refers to the cost at which an asset is acquired.
Business Site
The physical location or online presence where a company conducts its operations or business activities.
- Understand and apply proper classification of costs associated with long-lived assets.
Verified Answer
SJ
stephanie jonahJul 10, 2024
Final Answer :
C
Explanation :
The cost associated with the purchase price of land should be classified under category C, which is "Land."
Learning Objectives
- Understand and apply proper classification of costs associated with long-lived assets.