Question 8 (2 points)

Waldorf Corporation acquired land, buildings, and equipment from a bankrupt competitor at a lump-sum price of $132,000. At the time of acquisition, Waldorf paid $12,000 to have the assets appraised. The appraisal disclosed the following fair values:

Land $96,000

Buildings 76,800

Equipment 19,200

What costs should be assigned to the land, buildings, and equipment, respectively?

Question 8 options:

a)

$96,000, $76,800, and $19,200

b)

$66,000, $52,800, and $13,200

c)

$72,000, $57,600, and $14,400

d)

$48,000, $48,000, and $48,000

On March 1, 2020, Chucky Ltd. purchased land for $ 270,000 cash, which they intend to use for their new head office. Construction on the office building began on March 1. The following expenditures were incurred for construction:

Date Expenditures

March 1, 2020 $ 450,000

April 1, 2020 252,000

May 1, 2020 450,000

June 1, 2020 720,000

The office building was completed and ready for occupancy on July 1. To help pay for construction, Chucky borrowed $ 360,000 on March 1, 2020, on a 9%, three-year note payable. Other than this note, the only other debt outstanding during 2020 was a $ 150,000, 10%, six-year note payable dated January 1, 2019.

Question 9 (2 points)

The weighted-average accumulated expenditures on the construction project during 2020 were

Question 9 options:

a)

$ 1,467,000.

b)

$ 348,000.

c)

$ 258,000.

d)

$ 156,000.

Question 10 (2 points)

The actual interest cost incurred during 2020 was

Question 10 options:

a)

$27,000

b)

$39,500

c)

$42,000

d)

$47,400