Asked by Rheagan Fischette on May 08, 2024
Verified
Land improvements should be depreciated over the useful life of the
A) land.
B) buildings on the land.
C) land or land improvements, whichever is longer.
D) land improvements.
Land Improvements
Enhancements made to a plot of land, such as landscaping, fencing, or sidewalk construction, which increase the land's value and usefulness but may depreciate over time.
Useful Life
The estimated period that an asset is expected to be usable for the purpose it was acquired, important for calculating depreciation.
- Comprehend the various types of leases and the depreciation associated with enhancements linked to leased assets.
Verified Answer
FN
Faith NaylorMay 12, 2024
Final Answer :
D
Explanation :
Land improvements are depreciated over their useful life, not the life of the land or buildings on the land. Land itself is not depreciated.
Learning Objectives
- Comprehend the various types of leases and the depreciation associated with enhancements linked to leased assets.