Chapter 2 - Conceptual Framework for Financial Reporting - Brief Exercises - Page 71: BE2-13b

This expenditure is an asset and therefore should be deposited into the Land Development account.

The driveway is an asset that will last for many years. Thus, the 21,000 dollars should preferably be deposited into the Land Development/Improvement account. Moreover, the asset should not only be capitalized but also depreciated over the years.