Suppose a company buys a piece of land with a building for


Suppose a company buys a piece of land with a building for $100,000. The company's accountant wants to divide the cost of the land and building for the firm's financial records. Why?

a. The land is always more expensive than buildings.

b. The land will not be depreciated but the building will be, so the accountant needs two different accounts.

c. The land will appreciate and its cost will have to increase over time while the building will be depreciated.

d. The accountant needs to depreciate expense from accumulated depreciation after the first year.

e. none of the above

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Suppose a company buys a piece of land with a building for
Reference No:- TGS01258857

Expected delivery within 24 Hours