Empire Corporation Purchased an Office Building for $500,000 Cash on April

question 159

Multiple Choice

Empire Corporation purchased an office building for $500,000 cash on April 1. Prior to renting it out to tenants on July 1, Empire spent $200,000 on materials and labor to renovate the property. It funded $50,000 of the renovation cost with its own funds and borrowed the remaining $150,000. As of July 1, $2,000 of interest had been paid to the bank, but none of the principal had been repaid. The basis of the building on July 1 is

• A) $500,000.
• B) $502,000.
• C) $700,000.
• D) $702,000.

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Definitions:

Named Range

A feature in spreadsheet software that allows a user to assign a memorable name to a specific range of cells for easier referencing.

Absolute Reference

In spreadsheet applications, a cell reference that remains constant even if the formula is copied to another cell or location.

Scope

Scope refers to the extent or range of view, reach, application, operation, or effectiveness of a particular action, subject, or policy.

Named Range

A feature in spreadsheet software that allows users to assign a name to a cell range for easier reference.