Q1: Aye Corp. purchases a remote-site building for computer operations. The building will be suitable for operations after some necessary expenditures. The wiring must be replaced to handle the computer specifications. The roof is leaking and must be replaced. All rooms must be repainted and re-carpeted and there will also be some updating of the plumbing needed. Which of the following statements is true?

Select one:

A: The cost of the building will include the repainting and re-carpeting costs.

B: The wiring replacement will be part of the computer costs, not the building cost.

C: The cost of the building is the purchase price of the building, while the additional expenditures are all capitalized as Building Improvements.

D: The cost of the building will include the cost of replacing the roof.

Q2: Which of the following statements concerning financial statement presentation is false?

Select one:

A: Companies must disclose their policy for testing impairments in the notes to their statements.

B: Companies reporting under IFRS must disclose whether they are using the cost or revaluation model for each class of long-lived asset in the notes to their statements.

C: Companies reporting under ASPE must include a reconciliation of the changes during the year in the carrying amount for each class of long-lived asset in the notes to their statements.

D: Goodwill is reported separately from intangible assets

Q3:Boulder Corp. has the following assets:

Buildings and Equipment (net)................................. $12,500,000

Trade Receivables................................................... 1,600,000

Inventory................................................................... 2,300,000

Land.......................................................................... 1,500,000

The total amount reported under Property, Plant, and Equipment would be:

Select one:

A: $17,900,000.

B: $16,300,000.

C: $14,000,000.

D: $20,500,000.