Answered: The demolition costs of an old building…

The demolition costs of an old building before a new building is constructed as: included as cost of land included as cost of old building included as cost of new building recognized as loss

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7MC: Depreciation of a plant asset is the process of ________. A. asset valuation for statement of...

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Question

The demolition costs of an old building before a new building is constructed as:

included as cost of land

included as cost of old building

included as cost of new building

recognized as loss

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Which cost is not recorded as part of the cost of a building? a. Real estate commission paid to buy the building b. Construction materials and labor c. Concrete for the building’s foundation d. Annual building maintenance
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Which of the following is NOT a capital expenditure? Fire insurance premium on a new building Architect's fees for a new building Expenditure incurred in the construction of parking space for staff Costs incurred in transporting newly purchases machinery
The demolition costs of an old building to clear the land for a possible future sale but DID NOT enhance the future economic benefits of the land is: included as cost of land included as cost of old building included as cost of new building recognized as expense
When adjusting for depreciation on a building, which of the following is one effect of the adjustment? Select one: a. The building account is decreased. b. The cost of the building declines. c. The book value of the building declines. d. The market value of the building declines.
All of the following costs associated with acquiring a building should be capitalized except a. The costs of buildings permits b. The cost of a strike associated with the construction of the building c. the contract price d. the costs of excavation for the building
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When an entity acquires land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the cost incurred to tear down the building shall be a. Expensed as incurred b. Amortized over the estimated time period between the tearing down of the building and the completion of the plant c. Added to the cost of the building d. Added to the cost of the land
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When a company purchases land with a building on it and immediately tears down thebuilding so that the land can be used for the construction of a plant, the costs incurredto tear down the building should be:a. expensed as incurredb. added to the cost of the plantc. added to the cost of the landd. amortized over the estimated time period between the tearing down of thebuilding and the completion of the plan