A company purchased a tract of land on which it expects to build a production plant on in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported?

A. Property, plant, and equipment
B. Land expense
C. A long-term investment
D. An intangible asset

Ans: C. A long-term investment

Business

You might also like to view...

LLC's ease of conversion to another business form?

What will be an ideal response?

Business

The MOST comprehensive method of con- veying the result of an appraisal is

a. the self-contained report. b. the form report. c. the restricted use report. d. the summary report.

Business