USA Allocate cost to sold lots

[AcctMgr]

Hello - We have a small subdivision and some lots have sold. We had to seal the roads recently and wondering if that cost should just be allocated to unsold lots and deduct at time of sale or if a portion of this can be expensed for previous lots sold?

Thanks,

 

[kirby]

The cost can only be allocated to lots you own now, not to lots owned by other people.

 

[AcctMgr]

Thank you. I agree with what you said. Scenario...if we have only 1 or 2 lots left and decide to seal the road one last time, does all of the cost get allocated to the last 2 lots? Can any of these costs be expensed?

 

[kirby]

If you are sealing again, if it is a repair to the previous seals it is an expense.