Use the following to answer questions
The company purchased land as a factory site. An old building on
the property was demolished, and construction began on a new
building. Costs incurred during the first year are listed below:
$
How much of the "property taxes on the land for
the next year" should be capitalized to the Land account?
How should the "sale of salvaged materials" be recorded?
A As an added cost of the land
B As a reduction of the cost of the land
C As an added cost to the building
D As a reduction of the cost of the building
$ What amount should be recorded to the Land
account?
What amount should be recorded to the Building
account?
