A Company Purchases a Remote Site Building for Computer Operations

question 101

Multiple Choice

A company purchases a remote site building for computer operations. The building will be suitable for operations after some expenditures. The wiring must be replaced to computer specifications. The roof is leaky and must be replaced. All rooms must be repainted and recarpeted and there will also be some plumbing work done. Which of the following statements is true?

• A) The cost of the building will not include the repainting and recarpeting costs.
• B) The cost of the building will include the cost of replacing the roof.
• C) The cost of the building is the purchase price of the building while the additional expenditures are all capitalized as Building Improvements.
• D) The wiring is part of the computer costs not the building cost.

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Definitions:

Fenestration

A surgical procedure that creates a new opening, especially used in reference to procedures involving the ear to improve hearing.

Incus

A small anvil-shaped bone in the middle ear that, along with the malleus and stapes, helps transmit sound vibrations to the inner ear.

Auricle

The external portion of the ear that directs sound waves into the ear canal.

Myringoplasty

A surgical procedure to repair a perforation in the eardrum to improve hearing and prevent water from entering the middle ear.