Practice
Check your answer
Choose a response, then check the answer and explanation.
A company buys a site with an old structure on it for 900,000. It pays 34,000 to demolish the structure and recovers 6,000 selling the salvage. It pays 22,000 to grade and level the site, and 48,000 to pave a parking lot. It then pays 1,400,000 to construct a new building.
The sort is decided by useful life. Land is never depreciated, improvements are depreciated over their own shorter lives, and burying an improvement in land means it is never depreciated at all.