When a Second-Hand Building Is Purchased Which of the Following

question 59

Multiple Choice

When a second-hand building is purchased which of the following should be recognised in a separate asset account instead of being debited to the building account?

• A) Legal fees for the purchase of the building
• B) Expenditure on initial repairs to the floor of the building
• C) Stamp duty paid on the building purchase
• D) The cost of installing an air conditioning system

---

Definitions:

Recognition Dispute

A disagreement or conflict over the acceptance or acknowledgment of something as valid or legitimate, such as authority, status, or rights.

Dispute Resolution

The process of resolving disputes between parties through negotiation, mediation, arbitration, or legal actions.

Jurisdictional Dispute

A disagreement over which legal authority or court has the right to hear and decide a case.

Unfair Labour Practice

Actions by employers or unions that violate employees' rights or the laws governing labor relations.