Video: Land Costs

In this lesson, Nick Palazzolo, CPA, breaks down the various components that accumulate into land costs for accounting purposes. Emphasizing the significance of accurate asset valuation on a company's balance sheet, he delineates the assorted types of costs that should be included, such as purchase price, legal fees, and preparation expenses. From environmental considerations, like clearing foliage, to dealing with pre-existing structures or liens, Nick methodically outlines the intricacies of land valuation. Furthermore, he distinguishes between depreciable assets and improvements with indefinite life, providing practical clarity with real-world examples to ensure a comprehensive understanding of capitalizing land costs.