How land should be reported to build a production plant


A company has purchased a tract of land. It expects to build a production plant on the land in approximately 5 years. During the 5 years before construction, the land will be idle. The land should be reported as:

(a) property, plant, and equipment.

(b) land expense.

(c) a long-term investment.

(d) an intangible asset.

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Finance Basics: How land should be reported to build a production plant
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