When land is purchased and an old building thereon is demolished, the total purchase price plus the demolition cost is the total capitalized value of the land.

Name: When land is purchased and an old building thereon is demolished, the total purchase price plus the demolition cost is the total capitalized value of the land.
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The total capitalized value of the land includes the purchase price and any costs necessary to prepare the land for its intended use, such as demolition costs.

When Land Is Purchased and an Old Building Thereon Is