The cost of removal of an old building to make the land ready for its intended use is charged to:
A) land.
B) land improvements.
C) buildings.
D) operating expenses.

Question

Quizplus · Accepted Answer

The cost of removing an old building to prepare the land for its intended use is considered part of the land cost. This is because such costs are necessary to get the land in a condition suitable for its intended use, and land is not depreciated.

The Cost of Removal of an Old Building to Make