A Company Purchases a Remote Building Site for Computer Operations

question 97

Multiple Choice

A company purchases a remote building site 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.

---

Definitions:

Delegated Duty

A task or responsibility that is assigned by someone in a higher position of authority to someone else, typically within an organizational structure.

Contractual Rights

Rights that arise out of agreements between parties, granting specific entitlements or obligations as delineated in the contract.

Express Provision

An express provision is a clause or term in a contract or legal document that is explicitly stated, leaving no room for misunderstanding or interpretation.

Personal Nature

Characteristics or activities that belong to or are intended for a specific individual, often relating to private or intimate aspects of life.