If a Corporation Purchases a Lot and Building and Subsequently

question 61

Multiple Choice

If a corporation purchases a lot and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on

• A)the significance of the cost allocated to the building in relation to the combined cost of the lot and building.
• B)the length of time for which the building was held prior to its demolition.
• C)the contemplated future use of the parking lot.
• D)the intention of management for the property when the building was acquired.

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Definitions:

Directional Selection

Mode of natural selection in which forms of a trait at one end of a range of variation are adaptive.

Disruptive Selection

Mode of natural selection in which forms of a trait at both ends of a range of variation are adaptive, and intermediate forms are selected against.

Hybrid Sterility

A condition in hybrids between different species where the offspring are sterile, unable to produce viable gametes.

Viable Gametes

Sex cells (sperm and eggs) that are capable of fertilization and development into a new organism.