Final answer:
The statement that acquisition-related land expenses can be classified as research and experimental expenditures is false.
Step-by-step explanation:
The statement that expenses in connection with the acquisition of land may be considered research and experimental expenditures is false.
Generally, research and experimental expenditures refer to costs incurred in the discovery of new knowledge or the development of new products or processes. Acquisition of land does not fit within the typical definition of R&D activities, which are meant to foster innovation and technological advancement. For example, experimental expenditures might include costs associated with designing new software, developing new drugs, or conducting scientific experiments to validate a hypothesis.
In the context of tax policy, the federal government offers a research and experimentation (R&E) tax credit, which is designed as an incentive for firms to invest in R&D activities. The acquisition of land, however, is not considered an R&D activity and would not typically qualify for this tax credit or be categorised as an experimental expenditure.