Question 18 (0.5 points)

When a long-term tangible asset is sold for an amount greater than book value the journal entry would include a debit to the account Loss on the Sale of an Asset.

:

1)

True.

2)

False.

Question 19 (0.5 points)

Foxy Co. purchased a three-acre tract of land for a building site for $320,000. On the land was a building with an appraised value of $120,000. The company demolished the old building at a cost of $12,000 but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract were $500. Property taxes paid were $3,000 of which $250 covered the period after the purchase date. The capitalized cost of the land is:

1)

$336,400.

2)

$334,650.

3)

$201,150.

4)

$336,150.