Johnson Company Acquires Land and Building for $4,000,000 Including All

question 41

Multiple Choice

Johnson Company acquires land and building for $4,000,000 including all fees related to acquisition. The land is appraised at $2,700,000 and the building at $2,100,000. The building is then renovated at a cost of $750,000. What amount is capitalized to the building account?

• A) $2,078,125
• B) $4,000,000
• C) $2,375,000
• D) $2,500,000

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Definitions:

W Mode

A mode for opening files in which the file is written; if the file already exists, its content is overwritten.

W+ Mode

In file handling, "W+ mode" allows for both writing and reading from a file, and will create a new file if it doesn't exist or truncate it to zero length if it does.

Physically Placed

Refers to the actual location or arrangement of components or objects in the physical world or on a storage medium.

Fopen() Function

A command in many programming languages used to open a file and associate it with a stream.