limestone blackboard.com Question Completion Status: $140,000 QUESTION 31 Losses on reduction to NRV may be charged to either cost of goods sold or to a line item among operating expenses. True False QUESTION 32 Lower of cost and net realizable value can be applied to individual inventory items, to logical categories of inventory, or to the entire inventory True False QUESTION 33 Net realizable value is selling price less costs of completion, disposal, and transportation True False QUESTION 34 Nontrade receivables do not include: Sales to customers. Loans to employees Income tax refund receivable Advances to affiliated companies limestone blackboard.com Question Completion Status: In computing capitalized interest, average accumulated expenditures: Is the arithmetic mean of all construction expenditures. O is determined by time weighting individual expenditures made during the asset construction period. Is multiplied by the company's most recent financing rates. All of these answer choices are correct. QUESTION 28 In testing for recoverability of property, plant, and equipment, an impairment loss is required if the: Asset's book value exceeds the undiscounted sum of expected future cash flows. Undiscounted sum of its expected future cash flows exceeds the asset's book value Present value of expected future cash flows exceeds its book value. All of these answer choices are incorrect. QUESTION 29 Inventory is valued at: Net realizable value. Cost. Replacement cost. Lower of cost and net realizable value. QUESTION 30 Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $30,00 on a working capital loan, and interest on a construction loan for the warehouse of $60,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year? $30,000 $40,000 $90,000 Ann