What is the purpose of Amazon depreciating its new building?

To account for the increase in market value of the building

To properly record expenses with associated revenues

To increase total assets on its balance sheet

To recognize the fair value of the building in its accounting records

Which of the following is not a cost that Amazon will capitalize as part of the new buildings cost?

Cost of the air conditioning units

Cost of the buildings parking lots

Real estate broker commissions

Closing costs including attorneys fees

Where will the cost of the building be reported in Amazons financial statements?

In the property, plant, and equipment section of the balance sheet

In the building expense account on the income statement

In the operating activities section of the statement of cash flows

In operating expenses on the income statement

What is a key reason that Amazon constructed the new building?

To take advantage of reduced labor costs

To allocate the cost of the building over its useful life

To offer Prime videos to customers in India

To generate revenue in India

In what account will Amazon report the cumulative cost of allocating its building over its useful life?

Depreciation Expense

Buildings

Accumulated Depreciation

Property, Plant, and Equipment