Ramstetter, Inc., purchased a piece of land with a new building on January 1, 20A. The land was valued at $40,000 and the building was valued at $120,000 with a 40 year life and a zero salvage (residual) value. How would the land and building appear in the plant, property and equipment section of the December 31, 20A, balance sheet?
a. Land at 40,000 less accumulated depreciation of 1,000; Building at 120,000 less accumulated deprecation of 3,000.
b. Land at 40,000; Building at 120,000.
c. Land at 30,000; Building at 120,000.
d. Land at 40,000; Building at 120,000 less accumulated depreciation of 3,000.
e. None of the above is correct.