Question : 23) Which of the following costs related to a corporation : 1412222

 

23) Which of the following costs related to a corporation car would be capitalized?

A) the cost to install an engine with higher horsepower

B) the cost to change the car's oil

C) the cost to replace a broken windshield

D) the cost of new tires

24) Roberts Construction Group paid $5,000 for a plant asset that had a market value of $7,500. At which of the following amounts should the plant asset be recorded?

A) $7,500

B) $2,500

C) $5,000

D) $10,000

 

25) Danube Corp. purchased a used machine for $10,000. The machine required installation costs of $1,000 and insurance while in transit of $500. At which of the following amounts would the machine be recorded?

A) $10,000

B) $11,000

C) $10,500

D) $11,500

 

26) Which of the following should be included in the cost of land?

A) cost to build sidewalks on the land

B) cost to clear the land of old buildings

C) cost of installing signage

D) cost of installing fences

27) Acer Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts:

 

Acquisition of land	$15,000
Surveys and legal fees	600
Land clearing	200
Fencing	1,000
Install lighting and signage	860

 

What amount should be recorded as the cost of land in the books of the corporation?

A) $16,800

B) $15,800

C) $16,660

D) $16,200

 

28) Acer Inc. plans to develop a shopping center. In the first quarter, they spent the following amounts:

 

Acquisition of land	$15,000
Surveys and legal fees	600
Land clearing	200
Fencing	1,000
Install lighting and signage	860

 

What amount should be recorded as the land improvements cost?

A) $1,200

B) $1,800

C) $1,860

D) $800

Fencing$1,000

Lighting and signage860

Cost of land improvement$1,860

29) Nobells Corporation has acquired a property that included both land and a building for $500,000. The corporation hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000. At what amount should the corporation record the cost of land?

A) $147,368

B) $52,632

C) $250,000

D) $214,286

 

30) Nobells Corporation has acquired a property that included both land and a building for $500,000. The corporation hired an appraiser who has determined that the market value of the land to be $300,000 and that of the building is $400,000. At what amount should the corporation record the cost of building?

A) $147,368

B) $285,714

C) $269,125

D) $214,286

 

31) Nobells Corporation has acquired a property that included both land and a building for $500,000. The corporation paid cash. The corporation hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000. Journalize the lump-sum purchase.

32) Give journal entry to record the acquisition of a plant asset for cash.