Final answer:
The correct response is 'c. Land held for a future building site' as it is intended for operational use by the business, which defines it as property and equipment.
Step-by-step explanation:
Items like land and buildings can both be considered property and equipment, depending on their intended use. We must assess their purpose to determine whether they fall under the category of property and equipment, which are assets used for operational purposes by a business. Land held for speculative purposes is considered an investment property, not equipment. A machine held as inventory is part of a business's inventory, not a property it uses for operations. Land or buildings held by a realtor for resale are considered inventory for a real estate business and not used as operational assets. Lastly, a building purchased to be used as a warehouse facility indeed falls under property and equipment since it will be utilized by the business for operations, but it is not one of the multiple-choice options provided.
In the context given, a piece of land earmarked for a future production site or business operation holds the essential purpose of being used by the business long-term, making it fall squarely into the property and equipment category. It contrasts with inventory items, which are meant to be sold in the ordinary course of business, and investment properties that are held for capital appreciation or rental income and not for production or supply purposes.