Final answer:
The correct answer is 'C. land held for possible use as a future plant site' because it represents a tangible asset that could be used in the production process in the future, classifying it as property, plant, and equipment.
Step-by-step explanation:
Property, plant, and equipment are categorized as fixed assets on a company's balance sheet, representing the long-term tangible assets that the company uses in the production of its goods and services. This includes machinery, buildings, and land that are used in the production process. However, not all physical items fall under the classification of property, plant, and equipment.
Examining the options given in the question:
- A. Deposits on machinery not yet received do not constitute an actual asset until the machinery is in possession and ready for use in production.
- B. Idle equipment awaiting sale is not being used for production and could be classified as inventory rather than a fixed asset.
- C. Land held for possible use as a future plant site would be considered property, plant, and equipment because it is a tangible asset that can be used in the future production process.
- D. The correct answer would not be 'None of these choices' since option C rightfully classifies as property, plant, and equipment.
Therefore, the correct answer to the question would be 'C. land held for possible use as a future plant site' since it is a tangible asset that may be utilized to support production in the future.