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Question 1: In 2020, Connar Company incurred these expenditures relating to its plant building: Continuing and frequent repairs: $160,000 Repainted the plant building: $40,000 Major improvements to the electrical wiring system: $128,000 Partial replacement of roof tiles: $56,000. At what amount of the above expenses should be capitalized?
Option 1: $128,000
Option 2: $184,000
Option 3: $256,000
Option 4: $288,000
Mary Contrary runs a nursery, Mary Contrary’s Garden, out of her home. She uses the greenhouse, which is attached to her home, to grow the plants that she sells and to grow her personal garden plants. The business use of the nursery is 80%. What is t..
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The company did not maintain any inventories, so total cost of goods sold was $4,400. Selling expenses totalled $1,600 ($600 variable and $1,000 fixed), and administrative expenses totaled $1,500 ($500 variable and $1,000 fixed). Operating income was..
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