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1.9 Purchase of a Vineyard Your client has just purchased land on which it intends...

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Accounting

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1.9 Purchase of a Vineyard Your client has just purchased land on which it intends to build a vineyard. In doing so, the client incurs the following costs: land surveys, costs of leveling the land, installation of fencing and the installation of a sprinkler system 1. Refer to industry guidance (Hint: ASC 905-360 specifically as it relates to recognition and subsequent measurement) in the Codification to determine whether these costs should be capitalized and whether they should be depreciated. List in the following order: a. Land surveys b. Costs of leveling the land C. Installation of fencing d. Installation of a sprinkler system 2. Educate your client on how the Codification classifies these different types of costs (permanent land development vs. limited-life land development)... Review the Glossary for support. 3. Locate one other example of a cost that may be capitalized and explain any restrictions on the period the cost may be capitalized. Make sure to cite the proper Codification reference for each part (#1-3) of your responses above as follows: FASB ASC (XXX)-(YY)-(ZZ)-(PP)

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