A Company Purchased Property for a Building Site

question 51

Multiple Choice

A company purchased property for a building site.The costs associated with the property were: What portion of these costs should be allocated to the cost of the land and what portion should be allocated to the cost of the new building?

• A)$175,800 to Land; $18,800 to Building
• B)$190,000 to Land; $3,800 to Building
• C)$190,800 to Land; $1,000 to Building
• D)$192,800 to Land; $0 to Building
• E)$193,800 to Land; $0 to Building

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Definitions:

Need Deprivation

A psychological condition resulting from the lack of fulfillment of basic human needs, affecting behavior and motivation.

Equity Theory

A theory that proposes individuals are motivated by a sense of fairness in the comparison of their own input-output ratio to that of others.

Perceived Inequity

A feeling experienced by employees when they believe the rewards they receive are not proportional to their contributions when compared to others.

Contribution

The effort or impact an individual or group provides towards achieving the objectives of an organization.