If land is purchased with a building on it that is to be demolished, proceeds from any salvaged materials are reported in the Other Income and Expenses section of the statement of income.

Question

Sangeeta Tiwari · Accepted Answer

Final Answer : False, Explanation :  Proceeds from salvaged materials are typically deducted from the cost of the land or the demolition expense, rather than being reported as Other Income and Expenses.

If land is purchased with a building on it that is to be demolished, proceeds from any salvaged materials are reported in the Other Income and Expenses section of the statement of income.

Definitions

Learning Objectives

Learning Objectives

Related questions