Land improvements such as landscaping


Fast and Furious Corporation (F&F) decided that it should cash in on the current popularity of stock car racing. F&F designed and built a track and related facilities including grandstands, garages, concession stands, landscaping, and a hotel on the property.

a. What does Rev. Proc. 87-56 list for the recovery period of the land improvements such as landscaping?

b. Now, conduct research (hint: use a tax service and the term "motorsports entertainment complex"), to determine the recovery period for the various assets if the entire project was completed in July 2007 and the first race was held on October 10, 2007.

c. Would your answers change if there were a one-year delay in construction? If so, how would it change and why?

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Accounting Basics: Land improvements such as landscaping
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