When a Company Purchases Land with a Building on It

question 166

Multiple Choice

When a company purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the costs incurred to tear down the building should be:

• A) added to the cost of the plant.
• B) amortized over the estimated time period between the tearing down of the building and the completion of the plant.
• C) expensed as incurred.
• D) added to the cost of the land.

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Definitions:

Social Inequality

A condition where societal resources are distributed unevenly, typically through norms of allocation that engender specific patterns along lines of socially defined categories of persons.

Country Party

A historical political group in Great Britain, advocating for the rights and interests of rural landowners and opposing the court party or government.

Political Power

Pertains to the ability or capacity to direct or influence the behavior of others or the course of events in a governance context.

American Colonies

The territories on the eastern coast of North America that were settled and governed by European powers, ultimately declaring independence to become the United States of America.