The net cost of demolishing a building on land purchased as a site for an addition to city hall should be debited to Buildings in the governmental activities accounts.

Name: The net cost of demolishing a building on land purchased as a site for an addition to city hall should be debited to Buildings in the governmental activities accounts.
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This item is a necessary part of preparing the land for use; therefore, it should be considered a part of the cost of the land not buildings.

The Net Cost of Demolishing a Building on Land Purchased