Reference no: EM132518138

Question 1: Al-Duhail Company purchased land and a building with a total price of 10,000,000 riyals, knowing that the book value of the land is 7,000,000 riyals and its estimated market value is 12,800,000 riyals and the book value of the building is 3,000,000 riyals while its market value is estimated at 3,200,000 riyals at the date of purchase, the cost of lands and building on Respectively are:

A. 6,666,667 , 3,333,333

B. 6,000,000 , 4,000,000

C. 7,000,000 , 3000,000

D. 8,000,000 , 2,000,000

E. 12,800,000 , 3,200,000

Question 2: A company purchased a plot of land to build a factory worth $ 260,000. The new company has spent the following amounts:

The amount of 15,000 attorney's fees and land purchase commission, 2,000 land ownership license fees, 3,000 property taxes due on the land, 10,000 costs for adding fence and lighting poles for the land, the cost of parking lots 5,000, the cost of construction work for the new building reached 500,000, the building license cost 25,000, the cost of Land improvements equals to

A. 15,000

B. 60,000

C. 295,000

D. 35,000

E. 30,000

Question 3: A company purchased a plot of land to build a factory worth $ 260,000. The new company has spent the following amounts:

The amount of 15,000 attorney's fees and land purchase commission, 2,000 land ownership license fees, 3,000 property taxes due on the land, 10,000 costs for adding fence and lighting poles for the land, the cost of parking lots 5,000, the cost of construction work for the new building reached 500,000, the building license cost 25,000, the cost of building equals to

A. 560,000

B. 810,000

C. 320,000

D. 525,000

E. 500

Question 4: Al-Duhail Co. bought a machine for £40,000, which is expected to have a useful life of five years and no residual value at the end of that time. If depreciation is to be provided on the double declining basis, the depreciation expense of the third year will be

A. 25,600

B. 5,760

C. 8,640

D. 31,360