A Real Estate Management Company Buys an Abandoned Apartment Complex

question 52

Multiple Choice

A real estate management company buys an abandoned apartment complex for $4.5 million. It pays a construction company $500,000 to demolish the old building. Which of the following is true?

• A) The company would record $5 million as the cost of the land.
• B) The company would record $4.5 million as the cost of the land.
• C) The company would record $4 million as the cost of the land.
• D) The company would record $500,000 as demolition expense.

---

Definitions:

Induced Voltage

Voltage that is produced in a conductor by magnetic lines of flux cutting the conductor.

Electromagnetic Induction

The production of voltage across a conductor situated in a changing magnetic field or a conductor moving through a stationary magnetic field.

Magnetic Flux

The measurement of the total magnetic field passing through a given area, represented symbolically as Φ, and providing insight into the strength and direction of magnetic fields.

Lenz's Law

A principle stating that an induced electromotive force (emf) always generates a current whose magnetic field opposes the original change in magnetic flux.