on November 1, 2021, Spring Lake Co. purchased a piece of land with plans to construct a new building. No plans for the building will begin until 2022. On December 31, 2021, the amount of depreciation expense recorded on the land would be equal to the entire cost of the land would be expensed in 2021. the cost of the land, dividend by its expected useful life, prorated for only 2 months out of 12 in 2021. no depreciation expenses would be recorded on the land in 2021. the cost of the land, minus any salvage value, divided by its expected useful life.
on November 1, 2021, Spring Lake Co. purchased a piece of land with plans to construct a new building. No plans for the building will begin until 2022. On December 31, 2021, the amount of depreciation expense recorded on the land would be equal to the entire cost of the land would be expensed in 2021. the cost of the land, dividend by its expected useful life, prorated for only 2 months out of 12 in 2021. no depreciation expenses would be recorded on the land in 2021. the cost of the land, minus any salvage value, divided by its expected useful life.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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on November 1, 2021, Spring Lake Co. purchased a piece of land with plans to construct a new building. No plans for the building will begin until 2022. On December 31, 2021, the amount of
the entire cost of the land would be expensed in 2021.
the cost of the land, dividend by its expected useful life, prorated for only 2 months out of 12 in 2021.
no depreciation expenses would be recorded on the land in 2021.
the cost of the land, minus any salvage value, divided by its expected useful life.
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