Reference no: EM132751027

Questions -

Q1) Which subsequent equipment expenditure should be expensed rather than capitalized?

a. Repair that maintains the equipment's condition

b. Replacement of equipment with an upgraded model

c. Reinstallation of the equipment moved to a new factory

d. Addition to the equipment that increases the quantity of units produced

Q2) A company purchases a property and starts construction on a new store. Which expenditure or receipt would not be part of the cost in the land account?

a. Commission fee paid to real estate agency

b. Cost of land fill and clearing

c. Cost of parking lots and driveways

d. Paying delinquent real estate taxes on the property acquired

Q3) A company determines that Product A's ending inventory has a total NRV of $6,140 and a total cost of $5,860. Product B's ending inventory has a total NRV of $4,450 and a total cost of $4,900. If the company uses the total inventory-level of LCNRV, what would be the total amount of ending inventory for these two products?

a. $10,760

b. $10,310

c. $10,590

d. $21,350

Q4) A company purchases real estate that includes land with a fair value of $320,000, a building with a fair value of $220,000, and equipment with a fair value of $140,000. If the purchase price of the real estate is $530,000, what amount should be debited to the land account?

a. $249,412

b. $530,000

c. $320,000

d. $150,588