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http://nec.embanet .com/ Chats Discussions Assi You are here NEC / ► AC5230 SP211_2_Eads / ► Quizzes / ► Assignment 7.3.1: Graded Problem Set 3 / ► Attempt 1 Assignment 7.3.1: Graded Problem Set 3 & Question 1 Marks: 2 Fences and parking lots are reported on the balance sheet as Choose one answer. a. current assets. b. land improvements. c. land. d. property and equipment. Question 2 Marks: 2 An improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be Choose one answer. a. expensed. b. debited to accumulated depreciation. c. capitalized in the machine account. d. allocated between accumulated depreciation and the machine account. Question 3 Marks: 2 A change in estimate should Choose one answer.
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a. result in restatement of prior period statements. b. be handled in current and future periods. c. be handled in future periods only. d. be handled retroactively. Question 4 Marks: 2 Which of the following disclosures is not required in the financial statements regarding depreciation? Choose one answer. a. Accumulated depreciation, either by major classes of depreciable assets or in total. b. Details demonstrating how depreciation was calculated. c. Depreciation expense for the period. d. Balances of major classes of depreciable assets, by nature and function. Question 5 Marks: 2 Tyson Chandler Company purchased equipment for $10,000. Sales tax on the purchase was $500. Other costs incurred were freight charges of $200, repairs of $350 for damage during installation, and installation costs of $225. What is the cost of the equipment? Choose one answer. a. $10,000 b. $10,500 c. $10,925 d. $11,275 Question 6 Marks: 2 When a company develops a trademark or trade name, the costs directly related to securing it should generally be capitalized. Which of the following costs associated with a trademark or trade name would not be allowed to be capitalized? Choose one answer. a. Attorney Fees
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b. Consulting Fees c. Research and Development Fees d. Design Costs Question 7 Marks: 2 Which of the following is not an intangible asset? Choose one answer. a. Trade Name b. Research and Development Costs c. Franchise d. Copyright Question 8 Marks: 2 The intangible asset goodwill may be Choose one answer. a. capitalized only when purchased. b. capitalized either when purchased or created internally. c. capitalized only when created internally. d. written off directly to retained earnings. Question 9 Marks: 2 When the fair market value of the assets acquired in a business purchase exceed the purchase price, negative goodwill (also called badwill) arises. When negative goodwill arises, GAAP requires that it be allocated to Choose one answer. a. an extraordinary gain.
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quizz - http:/nec.embanet .com/ Chats Discussions Assi You...

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