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Which of the following statements about involuntary

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62.Which of the following statements about involuntary conversions isfalse?a.An involuntary conversion may result from condemnation or fire.b.The gain or loss from an involuntary conversion may be reported as an extraordinaryitem.c.The gain or loss from an involuntary conversion should not be recognized when theenterprise reinvests in replacement assets.d.All of these.10 - 13
Test Bank for Intermediate Accounting, Thirteenth EditionMultiple Choice Answers—ConceptualItemAns.ItemAns.ItemAns.ItemAns.ItemAns.ItemAns.ItemAns.21.d27.d33.d39.d45.a51.c57.a22.b28.a34.a40.d46.b52.b58.c23.d29.b35.c41.c47.c53.b59.d24.c30.b36.a42.a48.d54.d60.a25.c31.d37.b43.c49.d55.c61.d26.c32.d38.b44.a50.a56.d62.cSolutions to those Multiple Choice questions for which the answer is “none of these.”21.Long-lived tangible assets used in the enterprise’s operations.40.Capitalized interest is depreciated over the related asset’s useful life.56.Capital expenditures include additions, betterments, improvements, and extraordinaryrepairs.MULTIPLE CHOICE—ComputationalUse the following information for questions 63 and 64.Wilson Co. purchased land as a factory site for $600,000. Wilson paid $60,000 to tear down twobuildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for titleinvestigation and making the purchase. Architect's fees were $31,200. Title insurance cost$2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. Thecontractor was paid $2,200,000. An assessment made by the city for pavement was $6,400.Interest costs during construction were $170,000.63.The cost of the land that should be recorded by Wilson Co. is10 - 14
64.The cost of the building that should be recorded by Wilson Co. is
Acquisition and Disposition of Property, Plant, and Equipment65.On February 1, 2010, Nelson Corporation purchased a parcel of land as a factory site for$200,000. An old building on the property was demolished, and construction began on anew building which was completed on November 1, 2010. Costs incurred during thisperiod are listed below:Demolition of old building$20,000Architect's fees35,000Legal fees for title investigation and purchase contract5,000Construction costs1,090,000(Salvaged materials resulting from demolition were sold for $10,000.)Nelson should record the cost of the land and new building, respectively, as

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Term
Winter
Professor
BillVabunker
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