When a Firm Buys Land on Which There Is a Building

question 36

Multiple Choice

When a firm buys land on which there is a building, and the building is torn down so that an appropriate new building can be constructed on the land:

• A)any of the purchase cost allocated to the old building is reported as a loss.
• B)the cost assigned to the land excludes the cost of the old building.
• C)the total cost of the land and old building are capitalized as land cost.
• D)any of the purchase cost allocated to the old building is capitalized as part of the cost of the new building.

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Definitions:

Organizational Politics

The application of influence and social connections in an organization to bring about changes for the advantage of either the individual or the organization as a whole.

Organizational Politics

Leveraging authority and cultivating relationships in a company to implement changes that are favorable to the person or the company itself.

Distrust

The feeling of skepticism or lack of confidence in the reliability, truth, or ability of someone or something.

Influence Tactic

Methods or strategies used by individuals or groups to alter or control the behavior or attitudes of others.