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Land Improvements

Since land has an unlimited life and cannot be “consumed”, it is not subject to amortization. However, land improvements such as driveways, parking lots, lighting systems, parking space white lines, etc are subject to amortization. Since these costs increase the usefulness of the land, they are charged to a separate asset account known as Land Improvements. This is done so as to be able to allocate their costs in the periods they benefit. Also, see Types of Capital Assets.

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