1. A long-lived asset classified as held for sale should be measured a. at its fair value. b. at its fair value less disposal costs. c. at its carrying amount. d. at the lower of its carrying amount or its fair value less disposal costs. 2. Self-construction of a building by a corporation can cause difficulties in determining the amount that should be set up as the cost of the asset. Specifically, overhead must be allocated to the cost. If this allocation makes the cost of the self-constructed building more than what an outside independent contractor would charge, then the company should charge the excess overhead to a. a loss of the current period. b. operational income/loss for the period. c. the capital project. d. None of the above answers is correct. 3. Weighted average accumulated expenditures (WAAX) a. describe the excess of debt taken out specifically for a construction project over and above the accumulation of all other debt on the company's books and records. b. describe the weighting of expenditures for a construction project by the time over which those expenditures can incur interest cost during a period. c. weight the length of time over which a company does a construction project. d. allow a company to capitalize interest costs that are in excess of the total interest for the period. 4. A company making a $200,000 "basket purchase" of land, building and equipment a. should value the assets at book value, determined by how the assets are carried on the seller's books and records. b. should value the assets at amortized cost. c. should allocate the $200,000 between/among the assets obtained, based on their relative fair value. d. should value the assets' cost at fair value, with any amount over/under the amount paid being shown in other gains and losses on the income statement. 5. Company ABC has an expenditure for an asset replacement. The cost and accumulated depreciation for the replaced asset are not known. If the life of the replaced asset is extended by the expenditure (only), a. the expenditure should be expensed. b. the expenditure should be capitalized in its entirety and depreciated over its useful life c. the expenditure should be debited to accumulated depreciation. d. the expenditure should be shown as a deferred gain