question archive Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets
Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets
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Landscaping costs can be deducted in the determination of net business income, even if they involve items that would normally be considered capital assets.
Question 4 options:
True
False
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False. it is clearly stated that the said landscape cost is considered capital asset. Meaning it should be capitalized.
Cost related to the landscape such as driveways, fences, paved parking areas and etc. should be capitalized and have a separate account title "Land Improvements" account. It is also subject for depreciation over its useful life.
However, if the landscaping cost would not normally part of capital asset such as minor repairs, then it will be deducted as REPAIR EXPENSE or other appropriate nominal account expenses and be included in determining NET BUSINESS INCOME.
