Which of the Following Is Included in the Cost of Land

question 55

Multiple Choice

Which of the following is included in the cost of land?

• A)The cost of clearing the land
• B)The cost of fencing
• C)The cost of paving
• D)The cost of outdoor lighting

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Definitions:

Accelerated Depreciation

A method of depreciation used for accounting or income tax purposes that allows higher deductions in the earlier years of the useful life of an asset.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Residual Value

The estimated value of an asset at the end of its useful life, important in calculating depreciation and lease contracts.

Estimated Useful Life

The anticipated period over which an asset is expected to be used before it is fully depreciated.