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Business, 30.10.2019 22:31 dgadam7495
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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When a firm buys land on which there is a building, and the building is torn down so that an appropr...
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