Final answer:
The cost of removing an existing building from a site is indeed part of the cost of the new building, as these expenses are capitalized into the new asset's value.
Step-by-step explanation:
The statement that the cost of removing an existing building from a site is part of the cost of the new building is True. When a plot of land is being prepared for the construction of a new structure, all expenses associated with making the land suitable for building - including demolition of old structures, clearing debris, and grading the land - are considered to be part of the cost of the new building. This falls under the accounting concept known as 'capitalizing costs', where expenditures related to the development of an asset, like a new building, can be added to its value on the balance sheet. In business terms, this ensures that the total investment in the new property reflects all associated expenses, providing a more accurate financial representation.