What Costs Should Not Be Capitalized to "Building

question 78

Multiple Choice

What costs should not be capitalized to "building"?

• A)Construction permits.
• B)Engineering surveys.
• C)Property transfer tax.
• D)Interest during construction.

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Definitions:

Undisclosed Principal

A person whose existence is unknown to the third party in a contract made by an agent on their behalf.

Apparent Authority

The power that a third party perceives an agent has over the principal, based on the principal's behavior.

Actual Authority

Actual authority refers to the express and implied powers that an agent has been intentionally granted by the principal in an agency relationship.

Subagent

A person authorized by an agent to perform tasks or duties on behalf of the agent's principal.