Multiple Choice Accounting Problems (Simple)

Question 19 (1 point) When accounting for asset exchanges and if the transaction has commercial substance, which of the following is correct? O) The cost of the asset received is equal to the fair value of what is given up. Gains are always equal to $10,000 O) The cost of the asset received is equal to the carrying value of assets given up. Depreciation expense plus accumulated depreciation is equal to the asset retirement obligation Question 20 (1 point) Under ASPE, the cost for environmental clean-up costs at the end of an asset's useful life are (a) Expensed as incurred ( b) Recognized only if they represent a legal obligation. O c) Are capitalized once they have become apparent. ( d) None of the above