ABC Company purchased land with an old building.ABC plans to demolish the old building and then construct a new,modern building.The cost of demolishing the building will be part of the cost of the:

Question

Quizplus · Accepted Answer

The cost of demolishing the building is considered part of the land preparation costs, thus it is added to the cost of the land. This is because the demolition is necessary to make the land suitable for its intended use, which in this case is the construction of a new building.

ABC Company Purchased Land with an Old Building