Question
4.ABC Inc. acquired a large piece of land with the intention to use it as a potato growing farm. Before planting could begin, ABC Inc.
4.ABC Inc. acquired a large piece of land with the intention to use it as a potato growing farm.
Before planting could begin, ABC Inc. had to drain the site for flood prevention and spray it
with strong, specialized pesticides. The cost of the draining and pesticide spray should be:
A.Draining and pesticide spray should be added to the cost of land.
B.Draining and pesticide spray should be expensed immediately.
C.Draining and pesticide spray should be reported as a loss on acquisition of land.
D.The cost of draining should be capitalized, and the cost of pesticide spray should be expensed.
E.The cost of draining should be expensed, and the cost of pesticide spray should be capitalized.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started