The cost of constructing a new parking lot at the company's office building would be recorded as:

Question

Quizplus · Accepted Answer

The cost of constructing a new parking lot is considered a land improvement, which would be classified separately from the cost of the land itself. Since it involves construction work on the existing property, it is not classified as equipment. It also does not qualify as a building since it is not intended for human occupancy.

The Cost of Constructing a New Parking Lot at the Company's