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1. Insurance on equipment purchased, while the equipment is in transit, is part of the COSt 0* the equipment. A) True B) False 2. After an impairment loss is recorded for a limited-life intangible asset, the carrying amount becomes the basis for the impaired asset and is used to calculate amortization in future periods. A) True B) False 3. The same recoverability test that is used for impairments of property, plant, and equipment is used for impairments of indefinite-life intangibles. A) True B) False 4. The cost of acquiring a customer list from another company is recorded as an intangible asset. A) True 8) False 5. When assessing property, plant and equipment for impairment in asset groups, the firm groups assets at the lowest level of identifiable and largely independent cash flows. A) True B) False 5. Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6,400,000 on March 1, $5,280,000 on June 1, and $8,000,000 on December 31. Arlington Company borrowed $3,200,000 on January 1 on a 5-year, 12% note to help finance the construction of the building. In addition, the company had outstanding all year a 10%, 3-year, $6,400,000 note payable and an 11%, 4year, $12,000,000 note payable. What is the balance in the building account at December 31? A) $9,352,553 B) $19,680,000 ' C) $20,619,220 D) $21,084,780 )'%$20,064,000 hemical Company determines that a machine used in its operations has suffered A0550!) impairment eciiation expense