Land improvements are:
A) Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation.
B) Expensed in the period incurred.
C) Included in the cost of the land account.
D) Assets that increase the usefulness of land, and like land, are not depreciated.
E) Also called basket purchases.

Question

Quizplus · Accepted Answer

Land improvements are assets that are added to land to increase its usefulness, such as parking lots, sidewalks, and landscaping. These assets have a limited useful life, just like other fixed assets, and are subject to depreciation. Therefore, they are not expensed in the period incurred, and they are not included in the cost of the land account.

Land Improvements Are