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Mercy General Hospital Installs a New Parking Lot

Question 39

Multiple Choice

Mercy General Hospital installs a new parking lot. The paving cost $25,000 and the lights to illuminate the new parking lot cost $13,000. Which of the following statements is true with respect to these expenditures?


A) $25,000 should be debited to Land.
B) $13,000 should be debited to Lighting Expense.
C) $38,000 should be debited to Land.
D) $38,000 should be debited to Land Improvements.

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