When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.

Name: When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cost of removing structures on the land should be added to the cost of the land, not the building account, as it is part of preparing the land for its intended use.

When Land Is Purchased to Construct a New Building, the Cost