QUESTION 52 Rights, privileges, and competitive advantages that result from ownership of long-lived assets that do not possess physical substance are classified as O A. Long-term investments. O B. Intangible assets. OC. Property, plant, and equipment. O D. Current assets. QUESTION 53 Main Street, Inc. purchased land for $25,000 to be used as a new parking lot. The cost to pave the lot was $35,000 and the cost of the lights to illuminate the new parking area was $12,000. Which of the following statements is correct regarding how Main Street, Inc. should account for these expenditures? O A. $60,000 should be recorded in the Land account. O B. $72,000 should be recorded in the Land account. O C. $47,000 should be recorded in the Land Improvements account. OD. $72,000 should be recorded in the Land Improvements account. QUESTION 47 Mountaintop Sports Inc. issued $200,000 of 10-year, 6% bonds, with interest payable semiannually on June 30 and December 31 each year. The bonds were sold at 100. Assuming Mountaintop Sports has a December 31 fiscal year end, what amount should be recorded as interest expense in the journal entry made each six months? O A. $12,000 O B. $120,000 O C. $3,000 O D. $6,000 QUESTION 48 Layton Manufacturing Corp. issues 30,000 shares of $5 par value preferred stock for $100 cash per share. The journal entry to record the transaction will consist of a credit or credits to O A. Preferred Stock for $150,000 and Paid in Capital in Excess of Par Value-Preferred Stock for $2,850,000. O B. Cash for $3,000,000. O C. Preferred Stock for $3,000,000. O D. Preferred Stock for $150,000 and Gain on Sale of Stock for $2,850,000. QUESTION 43 Makenna Corporation purchased equipment on January 1, 2019. The equipment cost $180,000 and had an expected salvage value of $30,000. Using the straight-line method of depreciation, annual depreciation expense is computed as $25,000. What is the book value of the equipment as of December 31, 2020 (end of year 2)? O A. $100,000 O B. $50,000 O C. $130,000 O D. $180,000