What amount should acme record the building cost

Assignment Help Financial Accounting

Reference no: EM13823170

1. Acme purchased a property that included both land and a building for $200,000. Acme hired an appraiser who determined that the market value of the land was $140,000 and the market value of the building was $50,000. At what amount should Acme record the building cost?

$147,368

$52,632

$200,000

$140,000

2. A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the average-cost inventory costing method, what is the amount of ending inventory on December 31?

$1,000

$1,250

$2,250

$1,500

3. Which of the following principles are reflected in the lower-of-cost-or-market rule?

Accounting conservatism

Materiality concept

Disclosure principle

Consistency principle

4. Which of the following intangible assets bars other manufacturers from using the same name for a product?

Trademark

Patent

Franchise

5. A company that uses the perpetual inventory method purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, net/30. The company paid the shipper $100 cash for Freight in. The company then returned $200 of damaged goods and got an allowance from the vendor. Company paid the vendor 8 days after the sale. Assuming this was the only transaction affecting inventory, and no beginning balance, what would the cost basis of the inventory be?

$1,764

$1,864

$2,100

$1,900

Reference no: EM13823170

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