Question $1($Mandatory$)(2$ points$)$

$$

A characteristic of a fixed asset is that it is

Question $1$ options:

a$)$

intangible

b$)$

used in the operations of a business

c$)$

held for sale in the ordinary course of the business

d$)$

a short$-$term investment

Question $2($Mandatory$)(2$ points$)$

$$

Which of the following should be included in the acquisition cost of a piece of equipment?

Question $2$ options:

a$)$

transportation costs

b$)$

installation costs

c$)$

testing costs prior to placing the equipment into production

d$)$

All of these choices

Question $3($Mandatory$)(2$ points$)$

$$

The proper journal entry to purchase a computer costing $$975$ on account to be utilized within the business would be

Question $3$ options:

a$)$

Office Supplies$975$

$$ Accounts Payable$975$

b$)$

Office Equipment$975$

$$ Accounts Payable$975$

c$)$

Office Supplies$975$

$$ Accounts Receivable$975$

d$)$

Office Equipment$975$

$$ Accounts Receivable$975$

Question $4($Mandatory$)(2$ points$)$

$$

A building with an appraisal value of $$154,000$ is made available at an offer price of $$172,000.$The purchaser acquires the property for $$40,000$ in cash, a $90-$day note payable for $$45,000,$ and a mortgage amounting to $$75,000.$The cost basis recorded in the buyer's accounting records to recognize this purchase is

Question $4$ options:

a$)$

$$154,000$

b$)$

$$172,000$

c$)$

$$160,000$

d$)$

$$120,000$

Question $5($Mandatory$)(2$ points$)$

$$

A new machine with a purchase price of $$109,000,$ with transportation costs of $$12,000,$ installation costs of $$5,000,$ and special acquisition fees of $$6,000,$ would have a cost basis of

Question $5$ options:

a$)$

$$114,000$

b$)$

$$126,000$

c$)$

$$121,000$

d$)$

$$132,000$