In December 2018,Ami,the Owner of Elm,paid for a Parcel of Land

question 125

Multiple Choice

In December 2018,Ami,the owner of Elm,paid for a parcel of land along with a warehouse on behalf of Elm,the registered owner of the property,for a total cost of $700,000.Ami also paid a real estate commission of $35,000 and legal fees of $5,000 in connection with this purchase,plus $25,000 for the demolition of the warehouse.Elm will reimburse Ami for these costs in January 2019 and will begin construction of an office building on this land.Prior to the purchase,the land and warehouse were appraised at $500,000 and $200,000,respectively.How much should be capitalized to the value of the building in 2018?

• A)$0
• B)$35,000
• C)$235,000
• D)$270,000

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Definitions:

Conditioning

The process of learning associations between environmental stimuli and behavioral responses, often distinguished as classical or operant conditioning.

Cognitive Components

The aspects of thinking and understanding, including perception, memory, judgment, and reasoning.

B.F. Skinner

An American psychologist and behaviorist who developed the theory of operant conditioning, emphasizing the consequences of behavior in shaping future actions.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, particularly his experiments with dogs and salivation.