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Accounting

Cotton Hotel Corporation recently purchased Holiday Hotel and the land on which it is located with the plan to tear down the Holiday Hotel and build a new luxury hotel on the site. The cost of the Holiday Hotel should be :

A. capitalized as part of the cost of the new hotel.

B. written off as an extraordinary loss in the year the hotel is torn down.

C. depreciated over the period from acquisition to the date the hotel is scheduled to be torn down.

D. capitalized as part of the cost of the land.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9447967

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