When a Company Purchases Land with a Building on It

question 35

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 costs incurred to tear down the building should be

• A) amortized over the estimated time period between the tearing down of the building and the completion of the plant.
• B) expensed as incurred.
• C) added to the cost of the plant.
• D) added to the cost of the land.

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Definitions:

Posteriorly

The term posteriorly refers to a position towards the back of the body or behind a structure.

Nuclear Medicine

A medical specialty involving the application of radioactive substances in the diagnosis and treatment of disease.

Bone Scan

A nuclear imaging test that helps diagnose and track several conditions of the bones by injecting a radioactive tracer.