16. Each of the following is an example of an asset's involuntary conversion except

A) a condemnation of property.

B) a theft of the asset.

C) the sale of a fully depreciated asset.

D) a fire damaging an asset.

17. During self-construction of an asset by Samuelson Company, the following were among the costs incurred:

Fixed overhead for the year

Portion of $1,000,000 fixed overhead that be allocated to asset if it were normal

Variable overhead attributable to self con

What amount of overhead should be included in the cost of the self-constructed asset?

A) $90,000

B) $ -0-

C) $140,000

D) $50,000

18. The major difference between the service life of an asset and its physical life is that

A) service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners.

B) physical life is always longer than service life.

C) service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.

D) physical life is the life of an asset without consideration of salvage value and service life requires the use of salvage value.