Accounting (9)
A company purchased land for $350,000 cash. Real estate brokers' commission was $25,000
and $35,000
was spent for demolishing an old building on the land before construction of a new building
could start.
Under the historical cost principle, the cost of land would be recorded at ✔✔$410,000
Which of the following is not properly classified as property, plant, and equipment? ✔✔Land
improvement, such as parking lots and fences.
Which of the following would not be included in the Equipment account? ✔✔...Electricity used
by the
machine.
Whyte Clinic purchases land for $280,000 cash. The clinic assumes $3,000 in property taxes due
on the
land. The title and attorney fees totaled $2,000. The clinic had the land graded for $4,400. What
amount
does Whyte Clinic record as the cost for the land? ✔✔...$285,000.
Shaffer Company acquires land for $62,000 cash. Additional costs are as follows.
Removal of shed $ 300
Filling and grading 1,500
Salvage value of lumber of shed 120
Broker commission 1,130
Paving of parking lot 10,000
Closing costs 560
Shaffer will record the acquisition cost of the land as ✔✔...$65,370
The balance in the Accumulated Depreciation account represents the ✔✔...
The book value of an asset is equal to the ✔✔...asset's cost less accumulated depreciation
Depreciation is a process of ✔✔...cost allocation
A company purchased land for $350,000 cash. Real estate brokers' commission was $25,000
and $35,000
was spent for demolishing an old building on the land before construction of a new building
could start.
Under the historical cost principle, the cost of land would be recorded at ✔✔$410,000
Which of the following is not properly classified as property, plant, and equipment? ✔✔Land
improvement, such as parking lots and fences.
Which of the following would not be included in the Equipment account? ✔✔...Electricity used
by the
machine.
Whyte Clinic purchases land for $280,000 cash. The clinic assumes $3,000 in property taxes due
on the
land. The title and attorney fees totaled $2,000. The clinic had the land graded for $4,400. What
amount
does Whyte Clinic record as the cost for the land? ✔✔...$285,000.
Shaffer Company acquires land for $62,000 cash. Additional costs are as follows.
Removal of shed $ 300
Filling and grading 1,500
Salvage value of lumber of shed 120
Broker commission 1,130
Paving of parking lot 10,000
Closing costs 560
Shaffer will record the acquisition cost of the land as ✔✔...$65,370
The balance in the Accumulated Depreciation account represents the ✔✔...
The book value of an asset is equal to the ✔✔...asset's cost less accumulated depreciation
Depreciation is a process of ✔✔...cost allocation
