a. The tree cutting, land clearing, and grading costs associated with constructing the ski slopes would generally be debited to the land account. These costs are considered part of the acquisition and preparation of the land for its intended use as a ski resort. Since they are necessary to make the land suitable for the specific purpose of skiing, they are capitalized as part of the cost of the land.
b. If these costs are debited to the land account, they should not be depreciated. According to accounting principles, land itself is not subject to depreciation because it has an indefinite useful life. However, if there are improvements made to the land (e.g., ski lifts, buildings, etc.), those kinds of assets would be depreciated over their useful lives. Thus, while the costs of preparing the land are capitalized as part of the land asset, they are not depreciated.
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