Intermediate Accounting 1- ACNT 2303 Can someone help me with these questions? 1. Which of the following concepts is often given as justification not to
Intermediate Accounting 1- ACNT 2303
Can someone help me with these questions?
1. Which of the following concepts is often given as justification not to value noncurrent operating assets at their current values?
2. A company is constructing an asset for its own use. Construction began in 2011. The asset is being financed entirely with a specific new borrowing. Construction expenditures were made in 201` and 2012 at the end of each quarter. The total amount of interest cost capitalized in 2012 should be determined by applying the interest rate on the specific new borrowing to the
| a. average accumulated expenditures for the asset in 2012. | | |
| b. total expenditures for the asset in 2012. | | |
| c. average expenditures for the asset in 2012. | | |
| d. total accumulated expenditures for the asset in 2012. | |
3. On October 1, Justin, Inc. exchanged 8,000 shares of its $25 par value common stock for a parcel of land to be held for a future plant site. Justin's common stock had a fair market value of $80 per share on the exchange date. Justin received $36,000 from the sale of scrap when an existing building on the site was razed. The land should be carried at
4. The cost of land to be used in the operations of a business should include all of the following except
| a. property taxes to the date of acquisition assumed by the purchaser. | | |
| b. the cost of surveys of the land. | | |
| c. excavation in preparation for the construction of a new building on the land. | | |
| d. commissions related to the acquisition of the land. | |
5. Fixed asset turnover is computed as
| a. Sales divided by current year long-term assets. | | |
| b. Sales divided by average long-term assets. | | |
| c. Net income divided by average long-term assets. | | |
| d. Net income divided by current year long-term assets. | |
