$5.$ A company

purchases land and a building on the land. $$The land is

appraised at $$50,000,$ and the building at$$250,000.$If the cost of the

property is $$264,000$ in total, then the portion of the cost

allocable to the land is:a$.$

$$46,000$ c$.$

$$44,000$

$$

b$.$ $$52,000$ d$.$

$$58,000$

$6.$ J$.$R$.$ Enterprises

purchases an oil well for $$300$ million. $$It is estimated that

$5$ million barrels can be extracted from the well and that the

estimated residual value of the well will be $$0.$Depletion

expense for the first year if $150,000$ barrels were extracted and

sold, would be $($use the production method$)$:a$.$ $$6,000,000$

c$.$$$9,000,000$

$$

b$.$ $$10,000,000$ d$.$$$2,000,000$

$7.$ The Land account

would include all of the following costs

except:

$$

a$.$the cost to clear trees on the land to build

$$

$$

b$.$ the cost of building a parking lot on the land

$$

c$.$title fees paid at closing to acquire the land

$$

d$.$the cost of tearing down an old structure to clear the

land to build$$

$8.$ Compton

Contractors acquired a used storage building that was in poor

physical condition due to inadequate maintenance and vandalism.

$$Before placing the building in use,

Compton spent several thousand dollars replacing broken windows,

painting the building, and installing new support beams.

$$These fix$-$up expenditures should be recorded by debiting

which of the following accounts?

$$

a$.$Land

Improvements$$

c$.$ Accumulated Depreciation, Building

$$

b$.$

Building$$

d$.$ Repair Expense$$

$9.$ B Company

purchased a machine on January $1$ for $$4,000.$The original

estimated useful life wasfive years, and the estimated residual

value was $$1,000.$B Company uses straight$-$line depreciation.

$$Two years after the purchase of the machine, B Company

increases its estimated useful life by $3$ years, but the residual

value remains at $$1,000.$B Company should now record how much

depreciation in year $3($and beyond$)?$a$.$

$$400$

c$.$ $$300$

$$

b$.$ $$360$

$$d$.$ $$467$

$10.$ The recording of an

extraordinary repair will increase the carrying value of the asset

repaired.

$$

a$.$

True$$

b$.$ False