If land is purchased with a building on it that is to be demolished, proceeds from any salvaged materials are reported in the Other Income and Expenses section of the statement of income. O True O False When a company has a piece of property, plant, or equipment that has different components that depreciate at different rates, the total cost should be allocated to each component and each component should be depreciated separately. True O False A tangible asset must be fully depreciated before it can be removed from the books. True O False Which statement is correct regarding the use of the cost model and the revaluation model? The cost model is the only model allowed under ASPE. O The revaluation model is the only model allowed under IFRS. Either the cost model or the revaluation model can be under ASPE. The cost model is not allowed under IFRS. A machine that cost $82000 has an estimated residual value of $4000 and an estimated useful life of 5 years or 20000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5700 hours, would be O $22230. O $15600. O $24510. O $16400. Can the accumulated depreciation of a depreciable asset be greater than an assets cost when it is fully depreciated and still in use? Yes - as it is still in use it continues to be depreciated. O No- although it is still in use it does not continue to be depreciated. O No - because the asset is considered retired even though it is still in use. o Yes - as the asset is retired and then reinstated on the books to be depreciated for its continued use. A five-year, 4%, $102500 note payable is issued on January 1. Terms include equal annual instalment payments of $23024. The entry to record the first instalment payment will include a debit to Notes Payable of $18924. O credit to Notes Payable of $23024. O credit to Interest Expense of $4100. O debit to Cash of $23024. Last year, Oriole Bakery's statement of income reported the following: profit, $332000; interest expense, $79000; and income tax expense, $118000. The company's times interest earned ratio is 6.70 times. 4.48 times. O 5.20 times. 4.20 times