QUESTION 11

Acme purchased a property that included both land and a building for $200,000. Acme hired an appraiser who determined that the market value of the land was $140,000 and the market value of the building was $50,000. At what amount should Acme record the building cost?

		$147,368
		$52,632
		$200,000
		$140,000

3 points

QUESTION 12

A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the average-cost inventory costing method, what is the amount of ending inventory on December 31?

		$1,000
		$1,250
		$2,250
		$1,500

3 points

QUESTION 13

Which of the following principles are reflected in the lower-of-cost-or-market rule?

		Accounting conservatism
		Materiality concept
		Disclosure principle
		Consistency principle

3 points

QUESTION 14

Which of the following intangible assets bars other manufacturers from using the same name for a product?

		Trademark
		Patent
		Copyright
		Franchise

3 points

QUESTION 15

A company that uses the perpetual inventory method purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, net/30. The company paid the shipper $100 cash for Freight in. The company then returned $200 of damaged goods and got an allowance from the vendor. Company paid the vendor 8 days after the sale. Assuming this was the only transaction affecting inventory, and no beginning balance, what would the cost basis of the inventory be?

		$1,764
		$1,864
		$2,100
		$1,900