Land Was Purchased to Be Used as the Site for the Construction

question 149

Multiple Choice

Land was purchased to be used as the site for the construction of a plant. A building on the property was sold and removed by the buyer so that construction on the plant could begin. The proceeds from the sale of the building should be

• A) classified as other income.
• B) deducted from the cost of the land.
• C) netted against the costs to clear the land and expensed as incurred.
• D) netted against the costs to clear the land and amortized over the life of the plant.

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Definitions:

Obedience

Compliance with commands given by an authority figure.

Self-Serving Bias

A cognitive bias that involves attributing positive events to one's own character but attributing negative events to external factors, thereby protecting self-esteem.

Attributions

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Favorable

Describes something that is advantageous, positive, or beneficial in nature.