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:

FRCP 26(a)(1)

A rule within the Federal Rules of Civil Procedure mandating parties to disclose certain information without awaiting a discovery request.

Discoverable Information

Data or documents that can legally be required to be disclosed in a legal proceeding through discovery processes.

Initial Meeting

The first formal gathering between two or more parties to discuss potential collaboration, issues, or to kickstart a project.

Out-of-Court Settlements

Agreements reached between disputing parties without the need for a trial, often involving negotiation or mediation.