Merry Co. purchased. machine costing $125.000 paid shipping costs of $20,000. Merry spent an additional $10,000 testing and preparing the machine for use. What amount should Merry record as the cost of the machine? $155.000 $145.000 $135.000 $125.000 Which one of the following characteristics is not required for an asset to be properly described as property, plant and equipment? Held for use and not for investment. Newly purchased. Expected life of more than 1 year. Tangible. The types of assets that qualify for interest capitalization are Assets that are being used in the earning activities of the reporting entity. Assets that are ready for their intended use in the activities of the reporting entity. Assets that are constructed for the reporting entity's own use. Inventories that are manufactured in large quantities on a continuing basis. Which of the following statements is true regarding impairment of long-lived assets? U.S. GAAP requires a one-step impairment test, and IFRS requires a two-step impairment test. Both IFRS and U.S. GAAP permit reversal of an impairment loss in subsequent periods Both IFRS and U.S. GAAP prohibit reversal of an impairment loss in subsequent periods. Under U.S. GAAP, but not IFRS, reversal of an impairment loss in subsequent periods is ' prohibited. If a long-lived asset satisfies the criteria for classification as held for sale. Its carrying amount is the cost at the acquisition date if the asset is newly acquired. It is not depreciated. Interest attributable to liabilities of a disposal group to which the asset belongs is not ' accrued. It is classified as held for sale even if the criteria are not met until after the balance sheet date ' but before issuance of the financial statements