When a Firm Buys Land on Which There Is a Building

question 36

Multiple Choice

When a firm buys land on which there is a building, and the building is torn down so that an appropriate new building can be constructed on the land:

• A)any of the purchase cost allocated to the old building is reported as a loss.
• B)the cost assigned to the land excludes the cost of the old building.
• C)the total cost of the land and old building are capitalized as land cost.
• D)any of the purchase cost allocated to the old building is capitalized as part of the cost of the new building.

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Definitions:

Basic Quality

A fundamental characteristic or attribute that defines or greatly influences something's nature or essence.

Umami

One of the five basic tastes, recognized for its savory or meaty flavor profile, often attributed to the presence of glutamates.

Spicy

Characterized by the presence of flavors derived from spices, often resulting in a sensation of heat when consumed.

Vegetables

Edible plants or parts of plants, including leaves, roots, flowers, and stems, that are consumed by humans as part of a healthy diet.