18) The interest on a 84.000.0%, 90day note receivable is $240 b. $120 C. $60 d. $180 19) The a. interest on a $6,000, 10%, 1-year note receivable is $6,000 b. $50 c. $600. d. $6,600. 20) The receivables turnover ratio is computed by dividing a. total sales by average receivables b. total sales by ending receivables. c net credit sales by average receivables. d. net credit sales by ending receivables 21) A company purchased land for $210,000 cash. Real estate brokers commission was was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at $231,000. a. b. $210,000. c. $225,000. d. $246,000. 22) A company purchased land for $72,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Proceeds from salvage of the demolished building was $1,200. Under the cost principle, the cost of land would be recorded at a. $82,800. b. $72,000. c. $77,800. d. $84,000 23) Which of the following is not properly classified as property, plant, and equipment? a. Building used as a factory b. Land used in ordinary business operations. c. A truck held for resale by an automobile dealership. d. Land improvement, such as parking lots and fences. 24) A characteristic of a plant asset is that it is a. intangible. b. used in the operations of a business. c. held for sale in the ordinary course of the business. d. not currently used in the business but held for future use