1. Which of the following would not be considered part of the cost of equipment recently purchased?

a.

Sales tax.

b.

Transportation charges.

c.

Installation and setup charges.

d.

All three are included as part of the capitalized purchase cost.

2. The book value of an asset is:

1.

The undepreciated cost of the asset.

2.

The current replacement cost of the asset.

3.

The original cost of the asset.

4.

The accumulated depreciation on the asset to date.