Multiple Choice
A real estate management company buys land that contains an abandoned apartment building for $4.5 million.It pays a construction company $500,000 to demolish the apartment building.Which of the following is correct?
A) The company would record $5 million as the cost of the land.
B) The company would record $4.5 million as the cost of the land.
C) The company would record $4 million as the cost of the land.
D) The company would record $500,000 as demolition expense.
Correct Answer:
Verified
Correct Answer:
Verified
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