Accounting Help? Fixed Asset Accounts?

Question

Whiter Ski Co. has developed a piece of land into a ski resort. The company cleared and graded the land and built ski lifts.

1.) Should the tree cutting, land clearing, and ski lifts be debited to the land account?

2.) If so, should they be depreciated?

Answer 1

yes and no
You don't depreciate land. I would put the clearing and cutting into leasehold improvements and depreciate since the trees will grow back and the land won't stay cleared.
Ski lifts will depreciate. So I would depreciate everything but the price of the land.

Answer 2

No, I don't believe that should be debited to the land account. The ski lifts are separate from the tree cutting and the land clearing because the ski lifts will be something that will continue to need maintenance. The ski lifts should be depreciated. The trees and clearing are not a fixed asset.

Answer 3

The tree cutting and land clearing creates a new asset. This asset is a ski slope. The asset should be depreciated over the useful life of the ski slope. The ski lifts are other assets that should be depreciated as well.

Answer 4

first, land cannot be depreciated.

capitalize the cost of building the ski lifts and depreciate over their useful life.

Answer 5

comes under furnishings eg: lighting fixtures, stands tables, and television additionally, what do you with a electric sign board. place of work kit ability it may be in the enterprise elect to function eg:desktops, billing machines, rollers to fetch something from suitable floor or suitable. etc., its it sluggish might dealt with as enterprise advertising fees, yet now it rather is furnishings.