ACC 557 Week 7 Quiz
1-
Multiple Choice Question 214
A company has the following assets:
Buildings and Equipment, less accumulated depreciation of $2,000,000
$
7,600,000
Copyrights
960,000
Patents
4,000,000
Timberlands, less accumulated depletion of $2,800,000
4,800,000
The total amount reported under Property, Plant, and Equipment would be
$16,400,000.
$13,360,000.
$12,400,000.
$17,360,000.
2-
Multiple Choice Question 144
Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally
expensed when incurred.
not recorded until they become material in amount.
capitalized as a part of the cost of the asset.
debited to the Accumulated Depreciation account
3-
Multiple Choice Question 149
A gain or loss on disposal of a plant asset is determined by comparing the
original cost of the asset with the proceeds received from its sale.
book value of the asset with the asset's original cost.
book value of the asset with the proceeds received from its sale.
replacement cost of the asset with the asset's original cost.
4-
IFRS Multiple Choice Question 326
Salem Company hired Kirk Construction to construct an office building for £8,000,000 on land costing £2,000,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2013 and it has a useful life of 40 years. The price of the building included land improvements costing £600,000 and personal property costing £750,000. The useful lives of the land improvements and the personal property are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What is the net amount reported for the building on Salem Company's December 31, 2013 statement of financial position?
£7,573,750
£6,483,750
£7,800,000
£7,665,000
5-
Multiple Choice Question 77
Yocum Company purchased equipment on January 1 at a list price of $100,000, with credit
Multiple Choice Question 214
A company has the following assets:
Buildings and Equipment, less accumulated depreciation of $2,000,000
$
7,600,000
Copyrights
960,000
Patents
4,000,000
Timberlands, less accumulated depletion of $2,800,000
4,800,000
The total amount reported under Property, Plant, and Equipment would be
$16,400,000.
$13,360,000.
$12,400,000.
$17,360,000.
2-
Multiple Choice Question 144
Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally
expensed when incurred.
not recorded until they become material in amount.
capitalized as a part of the cost of the asset.
debited to the Accumulated Depreciation account
3-
Multiple Choice Question 149
A gain or loss on disposal of a plant asset is determined by comparing the
original cost of the asset with the proceeds received from its sale.
book value of the asset with the asset's original cost.
book value of the asset with the proceeds received from its sale.
replacement cost of the asset with the asset's original cost.
4-
IFRS Multiple Choice Question 326
Salem Company hired Kirk Construction to construct an office building for £8,000,000 on land costing £2,000,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2013 and it has a useful life of 40 years. The price of the building included land improvements costing £600,000 and personal property costing £750,000. The useful lives of the land improvements and the personal property are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What is the net amount reported for the building on Salem Company's December 31, 2013 statement of financial position?
£7,573,750
£6,483,750
£7,800,000
£7,665,000
5-
Multiple Choice Question 77
Yocum Company purchased equipment on January 1 at a list price of $100,000, with credit