of accounting for uncollectible accounts are the method and the accrual method allowance method and the net realizable method direct write-off method and the accrual method d direct write-off method and the allowance method. purchased land for $94,000 cash. Real estate brokers: commission was $5,000 et for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building were $1,200. Under the historical cost principle, the cost of land would be a. $104,800. b. $94,000 c. $99,800. d. $106,000. 23. Which of the following is not property classified as property, plant, and equipment? a. Building used as a factory b. Land used in ordinary business operations. c. A truck held for resale by an automobile dealership. d. Land improvement, such as parking lots and fences. 24. A characteristic of a plant asset is that it is a. intangible. b. used in the operations of a business. c. held for sale in the ordinary course of the business. d. not currently used in the business but held for future use. 25. Which of the following assets does not decline (get depreciated) in service potential over the course of its useful life? a. Equipment. b. Furnishings c. Land d. Fixtures. 26 Shaffer Company acquires land for $77,000 cash. Additional costs are as follows. $ 300 Removal of shed Filling and grading Salvage value of lumber of shed Broker commission Paving of parking lot 120 1,130 10,000 560 Closing costs Shaffer will record the acquisition cost of the land as a. $77,000 b. $78,690 c. $80,610 d. $80,370