1. Which of the following costs should be included in the carrying amount of property, plant and equipment?

a. Cost incurred while an item capable of operating for the intended use has yet to be brought into use

b. Initial operating loss

c. Cost of relocating part or all of an entity's operations

d. None of these should be included

2. The cost of property, plant and equipment acquired in a nonmonetary exchange that lacks commercial substance is measured at

a. Fair value of the asset given

b. Fair value of the asset received

C. Carrying amount of the asset given

d. Carrying amount of asset received

3. Which statement describes the proper accounting for loss in a nonmonetary exchange?

a. A loss is recognized immediately.

b. A loss is deferred.

c. An unrelated loss should be recorded.

d. A loss can occur only when asset is sold for cash

4. Which statement is true concerning acquisition by self-construction?

a. The cost of self-constructed asset is determined using the same principles as for an acquired asset.

b. Any internal profit is eliminated in arriving at the cost of self-constructed asset.

c. The cost of abnormal amount of wasted material is not included in the cost of the self-constructed asset.

d. All of the statements are true.