Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 10 - Acquisition and Disposition of Property, Plant, and Equipment - Review and Practice - Questions - Page 531: 7

Answer

The land purchased for use shall be accounted for as a fixed asset under property, plant, and equipment (PPE). On the other hand, the land purchased for sale should be accounted for as investment property since it’s held for sale.

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As summarized above.
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