The cost of land does not include the cost of fencing and paving.

Question

Quizplus · Accepted Answer

The cost of land typically includes the purchase price and costs directly associated with making the land ready for its intended use, such as legal fees, surveying fees, and costs to clear the land. Costs for improvements like fencing and paving are not included in the cost of the land but are instead capitalized as land improvements, which are depreciated over their useful lives.

The Cost of Land Does Not Include the Cost of Fencing