real estate held for productive use or investment. Land is recorded at the acquisition price plus incidental costs including real estate commissions, attorney's fees, escrow fees, title and recording fees, delinquent taxes paid by the buyer, surveying costs, draining, and grading of the property.The cost of knocking down an old building to clear the land to construct a new building is charged to the land account. Amounts received from selling materials salvaged from the old building reduces the cost of the land. Land is usually presented under the property, plant, and equipment section of the balance sheet. However, land bought for investment purposes or as a future plant site is classified under investments. If land is held by a real estate business for resale, it is shown as inventory. Land is not subject to depreciation because it is not a wasting asset.