Select the account that would be increased to show each of the following costs.
-The costs paid to clear land
A)Land
B)Land Improvements
C)Buildings
D)Machinery and Equipment
E)An Expense Account

Question

Quizplus · Accepted Answer

The costs paid to clear land are capitalized as part of the land account because they are necessary to get the land ready for its intended use. These costs are not expensed but added to the land's cost basis.

Select the Account That Would Be Increased to Show Each