Land Was Purchased to Be Used as the Site for the Construction

question 149

Multiple Choice

Land was purchased to be used as the site for the construction of a plant. A building on the property was sold and removed by the buyer so that construction on the plant could begin. The proceeds from the sale of the building should be

• A) classified as other income.
• B) deducted from the cost of the land.
• C) netted against the costs to clear the land and expensed as incurred.
• D) netted against the costs to clear the land and amortized over the life of the plant.

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