bapps/assessment/take/launch.jsp?course_assessment_id=_1385108_1&course_id=_1841607_1&new_attempt=1 Puestion Completion Status: QUESTION 1 Which cost is not recorded as part of the cost of the building a. Real estate commission paid to buy the building b. Concrete for the building's foundation 2 c. Annual building maintenance d. Construction materials and labor ME QUESTION 2 How should you report acquisition cost (a capital expenditure) a. Debit an expense b. Debit a liability c. Debit an asset d. Debit capital QUESTION 3 Which depreciation method almost always produces the most depreciation in the first year? a. Double-declining-balance b. Straight-line Oc Units of production d. All produce the same depreciation in the first year QUESTION 4 A Celta Airline jet costs $28.000.000 and is expected to fly 200,000,000 miles during its 10 year ife. Residual value is expected to be zero because the place was used when it was acquired. If the plane travels 1,000,000 miles during the first year how much depreciation should Celta Airline record under the units of production method a. $140,000 b. $2,800,000 c. $560,000 d. Cannot be determined from the data given. QUESTION 5 A copy machine costs $45,000 when new and has accumulated depreciation of $44,000. Suppose Print and Photo Center discards this machine and receives nothing. What is the result of the disposal transaction? a. No gain or loss b. Loss of $45,000 c. Gain of $1,000 d. Loss of $1,000 QUESTION A copy machine costs $45,000 when new and has accumulated depreciation of $44.000. Suppose Print and Photo Center sold the machine for $1.000, what is the result of the disposal transaction? a loss of $44.000 b. Notain or loss c. Gain of $1,000 d. Loss of $1,000 QUESTION 7 Which method is used to compute depletion? a. Depletion method b. Double-declining-balance Units-of-production method d. Straight-line method QUESTIONS A piece of equipment that cost $64,800 and on which 536,000 of accumulated depreciation had been recorded was disposed of on January 2, the first day of business of the current year Compute the gain or loss on the disposal if the equipment was discarded as having no value a. Loss of $28.800 b. No gain / No loss c. Gain of $36.000 d. Gain of $28.800 QUESTIONS Affordable Shoewear Company purchased equipment on January 1 at a list price of $120,000, with credit terms 2/10, 1/30. Payment was made within the discount period and Affordable was given a $2,400 cash discount Affordable paid $6,000 sales tax on the equipment, and paid installation charges of $1.760. Prior to installation, Affordable paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? a. $131.750 $123.600 51251360 d. 5129,360