Wesley Hospital installs a new parking lot. The paving cost ₤40,000 and the lights to illuminate the new parking area cost ₤20,000. Which of the following statements is true with respect to these additions?

Question

Quizplus · Accepted Answer

The cost of the paving and lights should be capitalized as Land Improvements, which is a separate account from the Land account. Therefore, option D is the correct answer as both costs should be debited to the Land Improvements account.

Wesley Hospital Installs a New Parking Lot