Foss Company bought land with a vacant building for ($ 400,000). Foss will use the building in

Question:

Foss Company bought land with a vacant building for $\$ 400,000$. Foss will use the building in its operations. Must Foss allocate the purchase price between the land and building? Why or why not? Would your answer be different if Foss intends to raze the building and build a new one? Why or why not?

Fantastic news! We've Found the answer you've been seeking!