Which of the following statements is INCORRECT?
A)The cost of land includes fencing and paving.
B)The cost of any asset is the sum of all the costs incurred to bring the asset to its intended use.
C)The cost of a leasehold improvement should be amortized over the shorter of its useful life or the term of the lease.
D)All of the above statements are correct.

Question

Quizplus · Accepted Answer

The cost of land includes the cost of acquisition, but it does not include fencing and paving costs. These costs are considered as improvements to land and are capitalized separately.

Which of the Following Statements Is INCORRECT