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New Farm Your small company client has just purchased land on which it intends to open a UPick fruit and vegetable farm. The company incurs
New Farm Your small company client has just purchased land on which it intends to open a UPick fruit and vegetable farm. The company incurs costs associated with: 1) surveying the land; 2) leveling the land; 3) installing fencing, and 4) installing irrigation lines. Refer to industry guidance in the Codification to determine whether these costs should be capitalized and whether there are restrictions surrounding the capitalization period. Also, educate your client on how the Codification classifies these different types of costs. Finally, locate one other example of a cost that may be capitalized and explain any restrictions on the period during which the cost may be capitalized
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