1. 
2
3 
4 
On April 1, 2020, Beta Corp. purchased a $410,000 piece of land with the intent of building a new warehouse. During 2020, Beta Corp. incurred additional costs and realized salvage proceeds associated with the transaction as follows: Demolition of existing building on site Legal and other fees to close escrow Proceeds from sale of demolition scrap $70,000 12,100 9,800 At what value would Beta Corp. record the land on its December 31, 2020, balance sheet? $492,100. $410,000. O O $480,000 $482,300. Beta Corp. acquired a tractor-trailer in exchange of a long-term note payable. Under which scenario will Beta Corp. record the value of the newly acquired tractor-trailer at the face amount of the note payable? Multiple Choice The company expects to use the asset for its entire physical life. The note payable explicitly requires the payment of interest at a realistic interest rate. O The note is a noninterest-bearing note. Interest on the note is not payable until the note is due. Beta Corp. is building new headquarters. To entice the company to build the facility in its jurisdiction, Westchester County, NY, donated a 12- acre tract of land to be used for the construction. The County purchased the land for $258,000 three years ago. The appraisal value at the time of the donation was $308,000. At what value should Beta Corp. record the donated land? Multiple Choice $308,000. a $283,000. $258,000 O $0. Beta Corp. spends $270,000 on research and development in 2020. As a result of the products developed, Beta Corp. anticipates it will generate additional revenue over the next six years totaling $5,600,000. When will Beta Corp. recognize the 2020 research and development expenditures as expenses? Multiple Choice Evenly over the period 2021-2026. Evenly over the period 2020-2025. Full amount in 2020. O O O Full amount in 2026. On April 1, 2020, Beta Corp. purchased a $410,000 piece of land with the intent of building a new warehouse. During 2020, Beta Corp. incurred additional costs and realized salvage proceeds associated with the transaction as follows: Demolition of existing building on site Legal and other fees to close escrow Proceeds from sale of demolition scrap $70,000 12,100 9,800 At what value would Beta Corp. record the land on its December 31, 2020, balance sheet? $492,100. $410,000. O O $480,000 $482,300. Beta Corp. acquired a tractor-trailer in exchange of a long-term note payable. Under which scenario will Beta Corp. record the value of the newly acquired tractor-trailer at the face amount of the note payable? Multiple Choice The company expects to use the asset for its entire physical life. The note payable explicitly requires the payment of interest at a realistic interest rate. O The note is a noninterest-bearing note. Interest on the note is not payable until the note is due. Beta Corp. is building new headquarters. To entice the company to build the facility in its jurisdiction, Westchester County, NY, donated a 12- acre tract of land to be used for the construction. The County purchased the land for $258,000 three years ago. The appraisal value at the time of the donation was $308,000. At what value should Beta Corp. record the donated land? Multiple Choice $308,000. a $283,000. $258,000 O $0. Beta Corp. spends $270,000 on research and development in 2020. As a result of the products developed, Beta Corp. anticipates it will generate additional revenue over the next six years totaling $5,600,000. When will Beta Corp. recognize the 2020 research and development expenditures as expenses? Multiple Choice Evenly over the period 2021-2026. Evenly over the period 2020-2025. Full amount in 2020. O O O Full amount in 2026
