Ramstetter, Inc

Multiple Choice

Ramstetter, Inc. purchased a piece of land with a new building on January 1, 20A. The land was valued at $40,000 and the building was valued at $120,000 with a 40 year life and a zero salvage (residual) value. How would the land and building appear in the plant, property and equipment section of the December 31, 20A statement of financial position?

A) Land at $40,000 less accumulated depreciation of $1,000; Building at $120,000 less accumulated depreciation of $3,000.
B) Land at $40,000; Building at $120,000 less accumulated depreciation of $3,000.
C) Land at $40,000; Building at $120,000.
D) Land at $30,000; Building at $120,000.