Indicate whether each of the following expenditures should be classified as:
-Cost of tearing down a building when land and a building on it are purchased
A) land (L)
B) land improvements (LI)
C) buildings (B)
D) equipment (E)
E) none of these (X).

Question

Quizplus · Accepted Answer

The cost of tearing down a building when land and a building on it are purchased is classified as part of the land cost because it is necessary to prepare the land for its intended use.

Indicate Whether Each of the Following Expenditures Should Be Classified