Question
Productive assets that are physically consumed in operations are: Multiple Choice Equipment. Land improvements. Land. Natural resources. A company has the following expenditures during the
Productive assets that are physically consumed in operations are:
Multiple Choice
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Equipment.
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Land improvements.
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Land.
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Natural resources.
A company has the following expenditures during the year.
Advertising | $ | 750,000 | |
Employee training | 93,750 | ||
Customer outreach and consultation | 656,250 | ||
The company believes that these efforts have increased the fair value of the entire company by $187,500. How much goodwill can the company recognize at the end of the year associated with these expenditures?
Multiple Choice
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$1,500,000.
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$187,500.
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$93,750.
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$0.
Interest is not capitalized for:
Multiple Choice
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Assets that are constructed as discrete projects for sale or lease.
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Interest is capitalized for all of these items.
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Inventories routinely and repetitively produced in large quantities.
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Assets constructed for a company's own use.
Assets acquired by the issuance of equity securities are valued based on:
Multiple Choice
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The fair value of the equity securities.
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Their fair values.
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The fair value of the assets acquired or the fair value of the equity securities, whichever is smaller.
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The fair value of the assets acquired or the fair value of the equity securities, whichever is more reasonably determinable.
The acquisition costs of property, plant, and equipment do not include:
Multiple Choice
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The ordinary and necessary costs to bring the asset to its desired condition and location for use.
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The net invoice price.
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Maintenance costs during the first 30 days of use.
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Legal fees, delivery charges, installation, and any applicable sales tax.
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