[Anonymous]

Becker Question –

On FAR Chapter 4, simulation #2, part 4, there is a part that asks you determine whether or not the following items should be capitalized to the construction of new warehouse or not. One of the item that isn’t capitalized is,

“Costs incurred to grade and pave driveways of parking lots.”

I know that capitalized costs do not include any costs for general repairs and maintenance costs. However, doesn’t grading and paving the driveway count as an improvement, which is a capitalized cost?

Thanks everyone!

[Anonymous]

Never mind. I guess grading and paving the parking lot count as part of land improvement.

[Author]

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