Multiple choice questions - each question is worth 2 points. 1. 2. A long-lived asset classified...

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Multiple choice questions - each question is worth 2 points. 1. 2. A long-lived asset classified as "held for sale" should be measured at a. b. c. its fair value. its fair value less disposal costs. its carrying amount the lower of its carrying amount or its fair value less disposal costs. Self-construction of a building by a corporation can cause difficulties in determining the amount that should be set up as the cost of the asset. Specifically, overhead must be allocated to the cost. If this allocation makes the cost of the self-constructed building more than what an outside, independent contractor would charge, then the company should charge the excess overhead to a. b. C. d. 3. 4. a loss of the current period. operational income/loss for the period. the capital project. None of the above answers is correct. In cases where a capital expenditure subsequent to acquisition does not enhance either the quantity of output or the quality of the asset, but instead increases the useful life of the asset, how should accounting for the expenditure to be handled? a. b. C. d. Remove the cost of the old asset and replace it with the complete cost of the new asset (carrying value plus capital expenditure). Debit the capital expenditure to Accumulated Depreciation. Keep the cost of the old asset on the books and records and add the new capital expenditure's cost as a new asset. None of the above answers is correct. When an impaired asset is held for sale, rather than for use within the company. then according to GAAP, a. b. C. d. depreciation on the asset should be reported in the operations section of the income statement. an unlimited amount of impairment "reversal is allowed by GAAP until the asset is sold. yearly impairment "reversals" can be made as long as the new carrying value does not exceed the carrying value of the asset before the impairment. no further impairment may be made to the asset's carrying value beyond the original impairment. Multiple choice questions - each question is worth 2 points. 1. 2. A long-lived asset classified as "held for sale" should be measured at a. b. c. its fair value. its fair value less disposal costs. its carrying amount the lower of its carrying amount or its fair value less disposal costs. Self-construction of a building by a corporation can cause difficulties in determining the amount that should be set up as the cost of the asset. Specifically, overhead must be allocated to the cost. If this allocation makes the cost of the self-constructed building more than what an outside, independent contractor would charge, then the company should charge the excess overhead to a. b. C. d. 3. 4. a loss of the current period. operational income/loss for the period. the capital project. None of the above answers is correct. In cases where a capital expenditure subsequent to acquisition does not enhance either the quantity of output or the quality of the asset, but instead increases the useful life of the asset, how should accounting for the expenditure to be handled? a. b. C. d. Remove the cost of the old asset and replace it with the complete cost of the new asset (carrying value plus capital expenditure). Debit the capital expenditure to Accumulated Depreciation. Keep the cost of the old asset on the books and records and add the new capital expenditure's cost as a new asset. None of the above answers is correct. When an impaired asset is held for sale, rather than for use within the company. then according to GAAP, a. b. C. d. depreciation on the asset should be reported in the operations section of the income statement. an unlimited amount of impairment "reversal is allowed by GAAP until the asset is sold. yearly impairment "reversals" can be made as long as the new carrying value does not exceed the carrying value of the asset before the impairment. no further impairment may be made to the asset's carrying value beyond the original impairment.