6. The items below represent expenditures related to the construction of a new office building Cost...
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6. The items below represent expenditures related to the construction of a new office building Cost of land $ 210,000 Cost of removing old structures Grading the site 2.000 Legal fees related to land purchase Payment of delinquent property taxes $ 2,000 5,000 4,500 900,000 Cost of obtaining building permits 4,500 Payment to building contractor Interest cost incurred during construction Cost of paving parking lot 20,000 39,000 Cost of fencing 5,000 The proper balances for the Land account and the Building account should be: Land $218,000 Building $900,000 $214,500 $901,000 $223,500 $943,500 D $223,500 $944,000 7. Which of the following statements is false? a. Accelerated depreciation methods record more depreciation expense over the life of an asset than either the straight-line method or the unit-of-production method. b. The cost of an asset, its residual value, and its estimated useful life are all used in computing depreciation. c. The unit-of-production method is most appropriate for an asset that wears out due to physical use. d. Land is never depreciated. Table ACC 203-1 On January 1, 2018, Knight Security Service purchased an alarm monitoring system for $110,000. The system is expected to be used for 5 years, after which it can be sold for $20,000. 8. Refer to Table ACC 203-1. What is the book value of the equipment on December 31, 2019, if Knight uses the straight-line method of depreciation? c. $74,000 a. $72,000 d. $54,000 b. $92,000 A8C0 А B с 6. The items below represent expenditures related to the construction of a new office building Cost of land $ 210,000 Cost of removing old structures Grading the site 2.000 Legal fees related to land purchase Payment of delinquent property taxes $ 2,000 5,000 4,500 900,000 Cost of obtaining building permits 4,500 Payment to building contractor Interest cost incurred during construction Cost of paving parking lot 20,000 39,000 Cost of fencing 5,000 The proper balances for the Land account and the Building account should be: Land $218,000 Building $900,000 $214,500 $901,000 $223,500 $943,500 D $223,500 $944,000 7. Which of the following statements is false? a. Accelerated depreciation methods record more depreciation expense over the life of an asset than either the straight-line method or the unit-of-production method. b. The cost of an asset, its residual value, and its estimated useful life are all used in computing depreciation. c. The unit-of-production method is most appropriate for an asset that wears out due to physical use. d. Land is never depreciated. Table ACC 203-1 On January 1, 2018, Knight Security Service purchased an alarm monitoring system for $110,000. The system is expected to be used for 5 years, after which it can be sold for $20,000. 8. Refer to Table ACC 203-1. What is the book value of the equipment on December 31, 2019, if Knight uses the straight-line method of depreciation? c. $74,000 a. $72,000 d. $54,000 b. $92,000 A8C0 А B с
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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