A Company Purchases a Remote Site Building for Computer Operations

question 76

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 re-carpeted 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 re-carpeting 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:

Deformation

Processes that cause a rock body to change position, orientation, size, or shape, such as by folding, faulting, and shearing.

Metamorphic Rocks

Rocks that have been transformed from an original state into a new texture or structure by heat, pressure, and/or fluid activity.

Solidification

The process of a liquid becoming solid, especially upon cooling, as in the formation of igneous rock from cooled magma or lava.

Erosion

The wearing away of soil, sediment, and rock through the removal of material by running water, waves, currents, ice, wind, and gravity.