Demolition costs to remove an old building from land purchased as a site for a new building are considered part of the cost of the new building.

Name: Demolition costs to remove an old building from land purchased as a site for a new building are considered part of the cost of the new building.
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Question

Quizplus · Accepted Answer

Demolition costs to remove an old building are considered part of the land preparation costs and are capitalized to the land account, not the new building cost.

Demolition Costs to Remove an Old Building from Land Purchased