1 assets have physical substance, whereas assets have no physical substance, but rather grant rights to their owner. Multiple Choice Natural resource: long-lived Intangible; tangible Tangible: natural resource Tangible; intangible: 2 Which of the following is NOT considered a type of intangible asset? Multiple Choice Patent Mineral deposits Copyright Licensing rights 3 The useful life estimated for a piece of equipment should be based on the total number of years that the equipment would be expected to last under normal use by all potential users of the equipment. True or False True False 4 Which of the following statements regarding the disposal of tangible assets is NOT correct? Multiple Choice O Gain or loss on disposal is calculated as the difference between the proceeds received from the disposal and the accumulated depreciation of the disposed asset. Disposals may be voluntary or involuntary. A disposal requires a journal entry to remove the assets from the accounts O A disposition requires a journal entry to update the depreciation expense and accumulated depreciation accounts 5 The acquisition cost of natural resources must be reported as a revenue expenditure because these assets are depleted. True or False True False 6 The cost of a long-lived asset includes all reasonable and necessary costs to acquire the asset, place it in its operational setting, and prepare for its intended use. True or False True False 7 The company purchased a building on January 3, 2019 and incurred the related costs listed below during the year ended December 31, 2019. What is the cost of the building? Closing agreement price for the building Architect fees $1,200,000 $ 25,000 Legal fees: $ 31,000. Repair of parking lot lights $ 5,000 Real estate (property) taxes relating to $ 2019 12,000 Multiple Choice $1,261,000 $1,273,000 $1.256,000 $1,268,000