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24. Cotton Hotel Corporation recently purchased Emporia Hotel
and the land on which it is located with the plan to tear down the
Emporia Hotel and build a new luxury hotel on the site. The cost of
the Emporia Hotel should be
a. depreciated over the period from acquisition to the date the hotel
is scheduled to be torn down.
b. written off as an extraordinary loss in the year the hotel is torn
down.
c. capitalized as part of the cost of the land.
d. capitalized as part of the cost of the new hotel.
25.
The cost of land does not include
a. costs of grading, filling, draining, and clearing.
b. costs of removing old buildings.
c. costs of improvements with limited lives.
d. special assessments.
26. The cost of land typically includes the purchase price and all
of the following costs except
a. grading, filling, draining, and clearing costs.
b. street lights, sewers, and drainage systems cost.
c. private driveways and parking lots.
d. assumption of any liens or mortgages on the property.