O'Conner Corporation Purchased Land with a Building on It

question 59

Multiple Choice

O'Conner Corporation purchased land with a building on it.It removed the old building and constructed a new one.Which of the following costs would not be included in the cost of the building?

• A)constructing the new building
• B)removing the old building
• C)building permits
• D)foundation
• E)all would be included

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Definitions:

Net Income

The final financial gain of a business after removing all expenses, taxes, and costs from the gross income.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).

Equity Accounts

Accounts that represent the owner's claim or interest in the assets of a business, reflected in the equity section of the balance sheet.

Operating Activities

The day-to-day actions that are involved in running a business, which are reflected in the cash flows from operating activities section of the cash flow statement.