Oakland Corp

question 152

Multiple Choice

Oakland Corp.purchased land and a building for a combined cost of $500,000.Oakland must

• A) record the $500,000 acquisition cost in an account called Land and Buildings.
• B) depreciate the $500,000 acquisition cost, less any residual value, over the expected useful life of the building.
• C) because part of the purchase involved land, record all of the cost in the Land account.
• D) allocate the $500,000 acquisition cost to separate Land and Buildings accounts based on their respective fair market values.

---

Definitions:

Free Ride

A situation where one benefits from others' efforts without contributing to the cost or effort involved.

Deindividuation

A psychological state where an individual loses self-awareness and feels less responsible for their actions, often occurring within group settings.

Self-Awareness

Perception of one’s self-identity, emotional experiences, incentives, and goals.

Irresponsible Behavior

Actions that show a lack of consideration for the consequences of one's actions, especially in regard to others' welfare and rights.