Reference no: EM132983169
Problem 1: A donated plant asset for which the fair value has been determined, and for which incidental costs were incurred in acceptance of the asset, should be recorded at an amount equal to its
a) Incidental costs incurred.
b) Fair value.
c) Book value on books of donor and incidental costs incurred.
d) Book value on books of donor.
Problem 2: Which of the following is (are) true about biological assets?
a) Biological assets are living animals or plants and must be disclosed as a separate item on the balance sheet.
b) Biological assets must be valued at cost.
c) Biological assets do not generally have future economic benefits.
d) All of the above.
Problem 3: The debit for a non-refundable sales tax properly levied and paid on the purchase of machinery preferably would be a charge to
a) The machinery account.
b) A separate deferred charge account.
c) Miscellaneous tax expense (which includes all taxes other than those on income).
d) Accumulated depreciation--machinery.