ABC Company purchased a piece of land with a preexisting building on it for a price of $250,000. In order to prepare the land for future construction, the old building was demolished at a cost of $15,000. The amount of scrap material that resulted from the demolition was sold for $2,000. As a result of the above purchase, the land and the building will be recorded in ABC’s books at

$200,000 and $50,000, respectively
$250,000 and $15,000, respectively
$263,000 and $0, respectively
$250,000 and $13,000, respectively

Answer rating: 100% (QA)

the land will be recorded as price of p... View the full answer