Intermediate Accounting II Quiz 2 -1

Intermediate Accounting II Quiz 2 -1 - Intermediate...

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Intermediate Accounting II Quiz 2 date Group Name company purchased land to be used as the site for the construction of a plant. Timber was cut from the building site so that construction of the plant could begin. The proceeds from the sale of the timber should be a. classified as other income. b. netted against the costs to clear the land and expensed as incurred. c. deducted from the cost of the plant. d. deducted from the cost of the land. When a company purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the costs incurred to tear down the building should be a. amortized over the estimated time period between the tearing down of the building and the completion of the plant. b. expensed as incurred. c. added to the cost of the plant. d. added to the cost of the land. 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 and incidental costs incurred. c. book value on books of donor and incidental costs incurred. d. book value on books of donor. According to SFAS No. 34, “Capitalization of Interest Cost,” interest should be capitalized for assets that are a. in use or ready for their intended use in the earnings activities of the enterprise. b. being constructed or otherwise being produced as discrete projects for an enterprise’s own use. c.
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This note was uploaded on 04/03/2011 for the course ACOOUNTING 3 taught by Professor Gvetadze during the Spring '11 term at Georgian.

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Intermediate Accounting II Quiz 2 -1 - Intermediate...

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