QUESTION 1 Which of the following is included in the cost of a plant asset? A) amounts paid to make the asset ready for its intended use B) regular repair and maintenance costs C) replacement of damaged parts of the asset D) wages of workers who use the asset in normal operations 2.5 points QUESTION 2 Masonry Construction Group paid $12,000 for a plant asset that had a market value of $14,500. At which of the following amounts should the plant asset be recorded? A) $14.500 B) $6000 C) $12,000 D) $24,000 2.5 points QUESTION 3 Which of the following is a characteristic of a plant asset, such as a building? It is used in the operations of a business B) It is available for sale to customers in the ordinary course of business C) it has a short useful life D) It will have a negligible value at the end of its useful life QUESTION 4 Which of the following statements is incorrect? A) The life cycle of a plant asset includes: acquisition, usage, and disposal. B) Depreciation is recorded on all plant assets C) Plant assets not currently being used in business operations are classified as long-term investments D) Plant assets are long-lived tangible assets used in the operations of a business 2.5 points QUESTION 5 An asset is considered to be obsolete A) only when it wears out- B) only at the end of its useful life C) when it is fully depreciated D) when a newer asset can perform the job more efficiently than the old asset can