When a Company Purchases Land with a Building on It

question 18

Multiple Choice

When a company purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the cost incurred to tear down the building should be

• A) Expensed as incurred
• B) Added to the cost of the plant
• C) Added to the cost of the land
• D) Amortized over the estimated time period between the tearing down of the building and the completion of the plant

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Definitions:

Mammals

Warm-blooded vertebrate animals characterized by the presence of mammary glands, which females use to feed their young.

Chronic Sleep Deprivation

A condition characterized by consistently not achieving enough sleep, leading to significant negative health and cognitive effects.

Stress Hormone

Biochemical substances, such as cortisol, released into the body in response to stress, affecting various bodily functions.

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and low blood-glucose concentration; it plays a key role in the body's stress response.