U1 CPA Quest Intermediate

U1 CPA Quest Intermediate - CPA Questions 1. Simons Company...

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Unformatted text preview: CPA Questions 1. Simons Company purchased land to build a new factory. The following expenditures were made in conjucti on with the land purchas e: Purchas e price of the land, $150,00 Real estate of 7% of the purchas e price Land survey, $5,000 Back taxes, $5,000 What is the initial value of the land? a. $160,000 b. $160,500 c. $165,500 d. $170,500 2. During 2011, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building: Purchase price of land $60,000 Legal fees for contracts to purchase land 2,000 Architects' s fees 8,000 Demolition of old building on site 5,000 Sale of scrap from old building 3,000 Constructi on cost of a new building (fully completed ) 350,000 What amounts should be recorded as the initial values of the land and the building? Land Building a $60,000 $360,000 b $62,000 $360,000 c $64,000 $358,000 d $65,000 $362,000 4. Cole Co. began constructing a building for its own use in January 2011. During 2011, Cole incurrrect interestCole Co....
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U1 CPA Quest Intermediate - CPA Questions 1. Simons Company...

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