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:

Semen

The male reproductive fluid containing spermatozoa and seminal fluid.

Intravenous Pyelography

A radiographic examination of the kidneys, ureters, and urinary bladder using intravenous contrast material to view these structures.

Radiopaque Substance

A material that does not allow X-rays or other forms of radiation to pass through, appearing white or light on a radiograph.

Cystoscopy

A diagnostic procedure that allows the doctor to examine the bladder and the urethra using a thin, lighted instrument called a cystoscope.