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:

Journal Entry

A record in bookkeeping that documents every financial transaction, detailing the accounts affected and whether they are debited or credited.

Interest-Bearing Note

A debt instrument that pays interest to the holder, typically at a fixed rate, until the note reaches its maturity date.

360-Day Year

An accounting convention that simplifies interest calculation by assuming twelve 30-day months, used mainly in financial markets.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a U.S. federal payroll tax that funds Social Security and Medicare programs.