When a company purchases land with a building on it and immediately tears down the building...
When a company purchases 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 should be?
Expensed as incurred
Added to the cost of the plant
Added to the cost of the land
Amortized over the estimated time period between the tearing down of the building and the completion of the plant
Homework Answers
please find below the solution.. let me know if you need any clarification..
correct answer is option : Added to the cost of the land.
if the building is bought along with the land and same is destroyed for new construction than cost of the same will be added to cost of land.
therefore answer = Added to the cost of the land
Add Answer to:
When a company purchases land with a building on it and
immediately tears down the building...
1. If a corporation purchases land and building and subsequently tears down the building and uses...
1. If a corporation purchases land and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on A) the intention of management for the property when the building was acquired. B) the significance of the cost allocated to the building in relation to the combined cost of the land and building. C) the length of time for which the building was held...
Bonita Co. purchased land as a factory site for $512,000. The process of tearing down two...
Bonita Co. purchased land as a factory site for $512,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $53,760 to raze the old buildings and sold salvaged lumber and brick for $8,064. Legal fees of $2,368 were paid for title Investigation and drawing the purchase contract. Bonita paid $2,816 to an engineering form for a land survey, and $87,040 for drawing the factory plans. The land survey...
Cheyenne Co. purchased land as a factory site for $456,000. The process of tearing down two...
Cheyenne Co. purchased land as a factory site for $456,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $47,880 to raze the old buildings and sold salvaged lumber and brick for $7,182. Legal fees of $2,109 were paid for title investigation and drawing the purchase contract. Cheyenne paid $2,508 to an engineering firm for a land survey, and $77,520 for drawing the factory plans. The land survey...
Sarasota Co. purchased land as a factory site for $600,000. The process of tearing down two...
Sarasota Co. purchased land as a factory site for $600,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $63,000 to raze the old buildings and sold salvaged lumber and brick for $9,450. Legal fees of $2,775 were paid for title investigation and drawing the purchase contract.Sarasota paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey had...
Sweet Co. purchased land as a factory site for $600,000. The process of tearing down two...
Sweet Co. purchased land as a factory site for $600,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $63,000 to raze the old buildings and sold salvaged lumber and brick for $9,450. Legal fees of $2,775 were paid for title investigation and drawing the purchase contract. Sweet paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey...
Oriole Co. purchased land as a factory site for $408,000. The process of tearing down two...
Oriole Co. purchased land as a factory site for $408,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,840 to raze the old buildings and sold salvaged lumber and brick for $6,426. Legal fees of $1,887 were paid for title investigation and drawing the purchase contract. Oriole paid $2,244 to an engineering firm for a land survey, and $69,360 for drawing the factory plans. The land survey...
Larkspur Co. purchased land as a factory site for $568,000. The process of tearing down two...
Larkspur Co. purchased land as a factory site for $568,000. The
process of tearing down two old buildings on the site and
constructing the factory required 6 months.
The company paid $59,640 to raze the old buildings and sold
salvaged lumber and brick for $8,946. Legal fees of $2,627 were
paid for title investigation and drawing the purchase contract.
Larkspur paid $3,124 to an engineering firm for a land survey, and
$96,560 for drawing the factory plans. The land survey...
Teal Co. purchased land as a factory site for $488,000. The process of tearing down two...
Teal Co. purchased land as a factory site for $488,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $51,240 to raze the old buildings and sold salvaged lumber and brick for $7,686. Legal fees of $2,257 were paid for title investigation and drawing the purchase contract. Teal paid $2,684 to an engineering firm for a land survey, and $82,960 for drawing the factory plans. The land survey...
Pina Co. purchased land as a factory site for $480,000. The process of tearing down two...
Pina Co. purchased land as a factory site for $480,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $50,400 to raze the old buildings and sold salvaged lumber and brick for $7,560. Legal fees of $2,220 were paid for title investigation and drawing the purchase contract. Pinapaid $2,640 to an engineering firm for a land survey, and $81,600 for drawing the factory plans. The land survey had...
Coronado Co. purchased land as a factory site for $488,000. The process of tearing down two...
Coronado Co. purchased land as a factory site for $488,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $51,240 to raze the old buildings and sold salvaged lumber and brick for $7,686. Legal fees of $2,257 were paid for title investigation and drawing the purchase contract. Coronado paid $2,684 to an engineering firm for a land survey, and $82,960 for drawing the factory plans. The land survey...
Bonita Co. purchased land as a factory site for $512,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $53,760 to raze the old buildings and sold salvaged lumber and brick for $8,064. Legal fees of $2,368 were paid for title Investigation and drawing the purchase contract. Bonita paid $2,816 to an engineering form for a land survey, and $87,040 for drawing the factory plans. The land survey...
Cheyenne Co. purchased land as a factory site for $456,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $47,880 to raze the old buildings and sold salvaged lumber and brick for $7,182. Legal fees of $2,109 were paid for title investigation and drawing the purchase contract. Cheyenne paid $2,508 to an engineering firm for a land survey, and $77,520 for drawing the factory plans. The land survey...
Sarasota Co. purchased land as a factory site for $600,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $63,000 to raze the old buildings and sold salvaged lumber and brick for $9,450. Legal fees of $2,775 were paid for title investigation and drawing the purchase contract.Sarasota paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey had...
Sweet Co. purchased land as a factory site for $600,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $63,000 to raze the old buildings and sold salvaged lumber and brick for $9,450. Legal fees of $2,775 were paid for title investigation and drawing the purchase contract. Sweet paid $3,300 to an engineering firm for a land survey, and $102,000 for drawing the factory plans. The land survey...
Larkspur Co. purchased land as a factory site for $568,000. The
process of tearing down two old buildings on the site and
constructing the factory required 6 months.
The company paid $59,640 to raze the old buildings and sold
salvaged lumber and brick for $8,946. Legal fees of $2,627 were
paid for title investigation and drawing the purchase contract.
Larkspur paid $3,124 to an engineering firm for a land survey, and
$96,560 for drawing the factory plans. The land survey...
Coronado Co. purchased land as a factory site for $488,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $51,240 to raze the old buildings and sold salvaged lumber and brick for $7,686. Legal fees of $2,257 were paid for title investigation and drawing the purchase contract. Coronado paid $2,684 to an engineering firm for a land survey, and $82,960 for drawing the factory plans. The land survey...
Most questions answered within 3 hours.
-
consider the following price index in 2017:85; price
index in 2018: 100; price index 2019: 110;...
asked 9 minutes ago -
What is the [CH3COO–]/[CH3COOH]
ratio necessary to make a buffer solution with a pH of 4.34?...
asked 14 minutes ago -
a
physics textbook is thrown straight upward with a velocity of 5.00
m/s from the too...
asked 14 minutes ago -
QUESTION: Provide a real-world example or describe a
hypothetical situation in which a legitimate organization used...
asked 13 minutes ago -
In the United States, laws mandating that companies be
responsible for take back of electronic wastes...
asked 31 minutes ago -
URGENT PLEASE HELP. could you make it easy to understand and in
C++ thanks
1. (30...
asked 38 minutes ago -
Case Study. Multi Projects
Multi Projects, Inc., is a well-established consulting firm
with 400 employees. It...
asked 43 minutes ago -
An 8.00 kg point mass and a 15.0 kg point mass are held in place
50.0...
asked 44 minutes ago -
What would cause my program to execute the first if statement no
problem, but the second...
asked 45 minutes ago -
The Department of Transportation (DOT) would like to test the
hypothesis that the average age of...
asked 59 minutes ago -
Suppose Hoosiers, a specialty clothing store, rents space at a
local mall for one year, paying...
asked 1 hour ago -
2. Your client from number 1 above is absolutely ecstatic about
the verdict in the immunization...
asked 57 minutes ago