A Company Purchased Property for a Building Site

question 187

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.

---

Definitions:

Forgetting Occurs

The process where information once learned and stored in the brain is lost or becomes harder to recall over time.

Encoding Failure

A situation in which information does not enter the brain's long-term memory and thus is forgotten.

Long-Term Memory

The phase of memory in which information is stored for extended periods of time, potentially lifelong, beyond the capacity of short-term or working memory.

Motivated Forgetting

Forgetting that occurs when something is so painful or anxiety-laden that remembering it is intolerable.