Ahmed Company bought a piece of land and decided to sell it in the future at a profit as the value of the land will increase. In which financial statement this land should be reported and which part specifically? Do we need to record depreciation on land

Ahmed Company bought a piece of land and decided to sell it in the future at a profit as the value of the land will increase. In which financial statement this land should be reported and which part specifically? Do we need to record depreciation on land

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 16GI

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Question

3. Ahmed Company bought a piece of land and decided to sell it in the future at a profit as the value of the land will increase. In which financial statement this land should be reported and which part specifically? Do we need to record depreciation on land

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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