CHAPTER 7 POST-PRACTICE QUESTIONS
1) In accounting, what is the meaning of capitalized?
A) Capitalized means that a liability account is credited (increased) for the cost of an asset.
B) Capitalized means that an asset account is debited (increased) for t
398 Chapter? ' Acal 91:] ML
1.? REVIEW l Plant Assets and Intangibles
QUle ChGCk (Answers are given on page 427.)
1. Bentley, Inc., purchased a tract of land, a small office building, and some equipment for
$1,800,000.The appraised value of the land was $
outshone you snooze es sets to answers
N easure and account for (1) Historical cost
1. st of plant assets.
(1) At what value are plant
assets recorded under
(2) Initial cost + all
expenditures necessary to
make the asset read