1. Property, plant, and equipment are A. tangible assets used in the operation of a business that have a useful life of more than one B. tangible assets used in the operation of a business that have a useful life of less than one C. intangible assets used in the operation of a business that have a useful life of more than Q intangible assets used in the operation of a business that have a useful life of less than one year year. one year ear 2. A company paid $150,000 plus a 6% commission and $4,000 in closing costs for a property. The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property's costs in the company's accounting records? Land $75,000; Land Improvements $30,000; Building $45,000 A. B. Land $79,500; Land Improvements $32,600; Building $47,700 C. Land $81,500; Land Improvements $32,600; Building $48,900 D. Land $87,500; Land Improvements $35,000; Building $52,500 3. Land improvements are assets that increase the usefulness of land A. and, like land, are not depreciated B and are subject to depreciation. and are included in the cost of land D. and are also referred to as lump-sum purchases. 4. Which of the following statements about intangible assets is FALSE? A. The acquisition cost of a franchise or license is amortized over its useful life. B. Goodwill is recorded only by an acquiring company when it purchases another company. C. Patents are amortized over their useful life not their legal life. D. A trademark is the exclusive right to reproduce and sell a work of art. 5. A company bought a new display case for $42,000 and estimated residual value to be $2,000 and the useful life to be eight years. Using straight-line depreciation, what is the book value of the display case after three years? A. $15,000 B. $15,750 C. $26,250 D. $27,000