old building is considered as part of land cost 1 Removal cost of old building is considered as part of land costtrue false

Land refers to the property held and used by the individual or companies for residential or…

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Removal cost of old building is considered as part of land cost true false

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 3DQ

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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
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
Land improvements are: A. Assets that increase the usefulness of land, and like land, are not depreciated. B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation. C. Expensed in the period incurred. D. Also called basket purchases. E. Included in the cost of the land account.
The systematic allocation of land's cost to expense is called depreciation. True False
Which costs would most likely be capitalized in the “Land Improvements” account? Costs associated with clearing the land for its intended business use Costs associated with paving and fencing on the land Costs associated with constructing a building on the land
A method that excludes residual value from the base for the depreciation calculation
In a self constructed asset would roads that are improved for the building be included in the cost of the building or separated and listed as land improvements?
As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called a. matching b. equipment allocation c. depreciation d. accumulation
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Similar to land, land improvements are not subject to annual depreciation. TRUE OR FALSE?
Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset
Indicate whether each of the following statements is true or false. When land with an old building is purchased as a future building site, the cost of removing the old building is part of the cost of the new building. Answer Special assessments for local improvements such as streetlights and sewers should be accounted for as land improvements. Answer Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset.