American Corporation Purchased a Building for $900,000 at the End

question 14

Multiple Choice

American Corporation purchased a building for $900,000 at the end of year 2002. The building will be depreciated over 40 years and is estimated to have a $100,000 salvage value. At the end of 2012, when it had a book value of $700,000, it was appraised for $1,100,000. A potential buyer offered $900,000. American rejected the offer. At what amount should the net book value of the building be at the end of 2012.

• A) $1,100,000
• B) $ 900,000
• C) $ 600,000
• D) $ 700,000

---

Definitions:

Sterilization

A process designed to eliminate or kill all forms of microbial life, including bacteria, viruses, fungi, and spores, typically by means of heat, chemicals, irradiation, or filtration.

Sterile Areas

Zones in a medical facility designed to be free from microorganisms to prevent infection.

Critical Item

An essential or highly important element, object, or factor in a particular context or situation.

Endoscope

A medical instrument consisting of a long, thin, flexible tube with a light and a video camera, used to view the interior of a hollow organ or cavity in the body.