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Hoochie [10]
3 years ago
7

Cayo Casta Cabins Corporation recently purchased Ship Island Resort and Casino and the land on which it is located with the plan

to tear down the resort and build a new luxury hotel on the site. Cayo Casta Cabin Corporation salvaged fixtures and wood flooring from Ship Island prior to demolishing the building. The proceeds from the sale of the salvaged materials should be?
Social Studies
1 answer:
Mnenie [13.5K]3 years ago
6 0

Answer:

reduction of the cost of the land

Explanation:

Based on the information provided within the question it can be said that the proceeds should be recorded as a reduction of the cost of the land. This is because the salvaged materials were gathered from the land that was purchased therefore they were an extra profit from the land and once sold can be deducted from the total cost of the land.

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