A company purchased a tract of land on which it expects to build a - 14287

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Sun 07 Oct, 2012
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Request Description

 

A company purchased a tract of land on which it expects to build a production plant on in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported?

 

·       A long-term investment

 

 

·       An intangible asset

 

 

·       Property, plant, and equipment

 

 

·       Land expense

Solution Description

 

 

A company purchased a tract of land on which it expects to build a production plant on in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported?