Warners Warehouse installs a new parking lot. The paving cost $45,000 and the lights to illuminate the new parking area cost $15,000. Which of the following statements is true with respect to these additions?
A) $45,000 should be debited to the Land account.
B) $60,000 should be debited to Land improvements.
C) $60,000 should be debited to the Land account.
D) $15,000 should be debited to Land improvements.

Question

Quizplus · Accepted Answer

The cost of paving and installing lights are both classified as Land improvements each will be depreciated over their separate useful lives.

Warners Warehouse Installs a New Parking Lot