Asked by Olivia Egede on May 31, 2024
Verified
Outdoor lighting at new business location
A) Land improvements
B) Buildings
C) Land
D) Machinery and equipment
Land Improvements
Enhancements made to a parcel of land to increase its value or usability, such as landscaping, fencing, and installation of utilities, which are usually depreciable over their useful life.
Buildings
Structures erected to serve as premises for business, residential, or other purposes, considered as fixed assets on a balance sheet.
Land
Land refers to the surface of the earth and any permanent fixtures attached to it, considered a fixed asset in accounting and not subject to depreciation.
- Allocate costs into suitable categories like land, improvements on land, buildings, and machinery & equipment.
Verified Answer
CE
Christine EliasJun 05, 2024
Final Answer :
A
Explanation :
Outdoor lighting is typically classified as a land improvement, which is a long-lived asset specifically related to the land on which a business operates.
Learning Objectives
- Allocate costs into suitable categories like land, improvements on land, buildings, and machinery & equipment.