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Ch(4):Depreciation of Plant Assets88Land ImprovementsLand Improvementsare structuralmade to land. Examples drive ways, parking, fences, landscaping, and underground sprinklers. The cost of land improvements includes all expenditures necessary to make the improvements ready forintended use. For example, the cost of a new parking lot for Home Depot includes the amount paid for paving, fencing, and lighting. Thus, Home Depot debits to land improvements the total of all of these costs.Land improvements have limited useful lives, and their maintenance and replacement are the responsibility of the company. Because of their limited useful life, companies expense (depreciate) the cost of landimprovements over their use lives.Land improvement will be shown in the balance sheet as a separate asset from land.BuildingsBuildings are facilities used in operations, such as stores. Offices, factories, warehouses,airplane hangars.Companies debit to the building account all necessary expenditures related to the purchase orconstruction of a building. Whena building is purchased, such costs include the purchase price, closing costs (attorney%u2019s fees, title insurance, etc.) and real estate broker%u2019s commission.