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Unformatted text preview: CHAPTER 10 ACQUISITION AND DISPOSITION OF PROPERTY, PLANT, AND EQUIPMENT MULTIPLE CHOICE Conceptual Answer No. Description d 1. Definition of plant assets. b 2. Characteristics of plant assets. d 3. Characteristics of plant assets. c 4. Valuation of plant assets. c 5. Composition of land cost. c 6. Composition of land cost. c 7. Determination of land cost. d 8. Determine cost of land used as a parking lot. c 9. Determine cost of delivery truck. a 10. Determine cost of machinery. b 11. Classification of small tools and containers. d 12. Assets which qualify for interest capitalization. a 13. Assets which qualify for interest capitalization. c 14. Definition of "avoidable interest." a 15. Period of time over which interest may be capitalized. b 16. Maximum amount of annual interest that may be capitalized. b 17. Interest capitalizationweighted-average factor. d 18. Classification of interest earned on securities purchased with borrowed funds. d 19. Write-off of capitalized interest costs. d 20. Plant asset acquired by issuance of stock. d 21. Valuation of nonmonetary exchanges. a 22. Gain recognition on a nonmonetary exchange. c 23. Gain recognition on a nonmonetary exchange. b 24. Accounting for donated assets. b 25. Valuation of donated assets. d 26. Identify conditions for capital expenditures. c 27. Capital expenditure. d 28. Identification of a capital expenditure. a 29. Identification of a capital expenditure. d 30. Determine loss on sale of depreciable asset. c 31. Knowledge of involuntary conversions. Test Bank for Intermediate Accounting, Eleventh Edition MULTIPLE CHOICE Computational Answer No. Description c 32. Calculate cost of land acquired. b 33. Determine cost of land. d 34. Determine cost of building. d 35. Calculate cost of land and building. a 36. Calculate average accumulated expenditures. c 37. Calculate amount of interest to be capitalized. b 38. Calculate weighted-average accumulated expenditures. a 39. Calculate weighted-average accumulated expenditures. d 40. Calculate weighted-average accumulated expenditures. a 41. Calculate actual interest cost incurred during year. b 42. Calculate amount of interest to be capitalized. c 43. Calculate amount of interest to be capitalized. c 44. Determine cost of purchased machine. c 45. Calculate cost of truck purchased. b 46. Calculate cost of machine purchased. d 47. Allocation of cost of a lump sum purchase. b 48. Calculate cost of equipment. d 49. Acquisition of equipment by exchange of stock held as an investment. b 50. Exchange of similar assets. b 51. Exchange of similar assets/gain. a 52. Exchange of similar assets/gain. c 53. Valuation of a nonmonetary exchange. a 54. Exchange of similar assets/gain....
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- Spring '09
- The Land