Question 1)

Chad Corporation purchased a tract of land for $765,000, which included a warehouse and office building. The following data were collected concerning the property:

Current Assessed ValuationVendor's Original CostLand$300,000$250,000Warehouse200,000150,000Office building400,000300,000$900,000$700,000

What are the appropriate amounts that Chad should record for the land, warehouse, and office building, respectively?

1. land, $273,214; warehouse, $163,929; office building, $327,857
2. land, $300,000; warehouse, $200,000; office building, $400,000
3. land, $250,000; warehouse, $150,000; office building, $300,000
4. land, $255,000; warehouse, $170,000; office building, $340,000

Question 2)

On January 2, 2020,HolliwellInc. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler$36,000Carrying amount of old boiler4,000Fair value of old boiler2,400Installation cost of new boiler3,200

The old boiler was sold for $2,400. At what amount should Holliwell capitalize the cost of the new boiler?

1. $42,300
2. $43,200
3. $39,200
4. $40,000

Question 3)

Which of the following statements is correct?

2. ASPE allows the cost, revaluation, or fair value models; IFRS allows only the cost model.
3. Both IFRS and ASPE allow the cost, revaluation, or fair value models.
4. IFRS allows the cost, revaluation, or fair value models; ASPE allows only the cost and revaluation models.
5. IFRS allows the cost, revaluation, or fair value models; ASPE allows only the cost model.

Question 4)

The costs of land improvements with limited lives, such as a parking lot, are

1. depreciated over their useful lives.
2. recorded in a separate account and depreciated over their useful lives.
3. recorded in a separate account.
4. added to the land account.

Question 5)

Which of the following wouldnotbe included in the cost of an item of property, plant, and equipment?

1. The purchase price net of any trade discounts and rebates.
2. Costs of obligations associated with the asset's eventual disposal.
3. Delivery costs.
4. Costs of training employees to use the asset.

Please help me to select the correct answers. thanks