Morris Recently Purchased a Building and the Tract of Land

question 65

Multiple Choice

Morris recently purchased a building and the tract of land on which it is located. Morris plans to raze the building immediately and to erect a new building on the site. The appraised value of the original building should be

• A) written off as an extraordinary loss in the year the building is razed.
• B) capitalized as part of the cost of the land.
• C) depreciated over the period from the date of acquisition to the date that the building is to be razed.
• D) capitalized as part of the cost of the new building.

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Definitions:

Iliac Vein

A vein in the pelvis that carries blood from the lower limbs and the pelvis back to the heart.

Posterior Vena Cava

Also known as the inferior vena cava, it is a large vein that carries deoxygenated blood from the lower half of the body to the heart.

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper body to the heart.

Jugular Vein

A vein that carries deoxygenated blood from the head back to the heart.