Chiquita Corp. purchased a large area of land with the intention to transform it into a banana plantation. Before the new seedlings can be planted, the site, which is prone to flooding, must be drained. The cost of the draining should be

capitalized as part of the cost of the land.

reported as loss from discontinued operations.

expensed immediately.

expensed only after the first crop of bananas has been harvested.

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