Assuming a corporation purchases a lot 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 Select one: a. management’s plans for the property when the building was acquired. b. the length of time for which the building was held prior to its demolition. c. the planned future use of the parking lot. d. the significance of the cost allocated to the building in relation to the combined cost of the lot and building.
Assuming a corporation purchases a lot 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 Select one: a. management’s plans for the property when the building was acquired. b. the length of time for which the building was held prior to its demolition. c. the planned future use of the parking lot. d. the significance of the cost allocated to the building in relation to the combined cost of the lot and building.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 16GI
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Assuming a corporation purchases a lot 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
Select one:
a. management’s plans for the property when the building was acquired.
b. the length of time for which the building was held prior to its demolition.
c. the planned future use of the parking lot.
d. the significance of the cost allocated to the building in relation to the combined cost of the lot and building.
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