The demolition costs of an old building to clear the land for a possible future sale but DID NOT enhance the future economic benefits of the land is: included as cost of land included as cost of old building included as cost of new building recognized as expense

The demolition costs of an old building to clear the land for a possible future sale but DID NOT enhance the future economic benefits of the land is: included as cost of land included as cost of old building included as cost of new building recognized as expense

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 4DQ

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Question

The demolition costs of an old building to clear the land for a possible future sale but DID NOT enhance the future economic benefits of the land is:

included as cost of land

included as cost of old building

included as cost of new building

recognized as expense

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