(1) A company sold for $3,000 a plant asset that had a cost of $10,000 and accumulated depreciation of $7,500. What gain or loss did the company experience?

Loss of $7,000

Gain of $3,000

Loss of $500

Gain of $500

(2)Which one of these statements is true?

Totals of major classes of assets can be shown in the balance sheet, with asset details disclosed in the notes to the financial statements.

Since intangible assets lack physical substance, they need to be disclosed only in the notes to the financial statements.

Goodwill should be reported as a contra account in the stockholders equity section.

Intangible assets are typically combined with plant assets and natural resources and then shown in the property, plant, and equipment section.

(3)

Marin Inc. purchases land for $450000 cash. The clinic assumes $4200 in property taxes due on the land. The title and attorney fees totaled $2400. The clinic had the land graded for $7400. What amount does Marin Inc. record as the cost for the land?

$456600.

$457400.

$450000.

$464000