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If a corporation purchases land with a building on it, and subsequently tears down the building and because the land will be used as a

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If a corporation purchases land with a building on it, and subsequently tears down the building and because the land will be used as a parking lot, the total amount paid for the land and building should be expensed since the building will be torn down to make a parking lot. be capitalized as land. the value of land should be capitalized and the value of the building should be expensed be the prorated between the land and building accounts based on the market values at the time of purchase

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