Which of the following expenditures would be included as a cost of an asset?

Select one:

Mistakes in installation

Vandalism

Delinquent property taxes

Uninsured theft loss

Question 2

Which of the following expenditures would NOT be included in the cost of an asset?

Select one:

Freight costs

Vandalism

Sales tax

Costs of clearing land

Question 3

A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400 and $5,850 was paid to remove an old building from which salvaged materials sold for $950. What is the cost basis for the land?

Select one:

$90,600

$91,550

$88,150

$87,200

Question 4

Which of the following would NOT qualify as a capital expenditure?

Select one:

Overhauled an engine

Installed new carpet

Replaced tires on company trucks

Replaced the warehouse roof

Question 5

Book value is defined as __________.

Select one:

Current market value less residual value

Cost less residual value

Current market value less accumulated depreciation

Cost less accumulated depreciation

Question 6

What type of depreciation occurs when an asset can no longer provide services at the level originally intended?

Select one:

Physical depreciation

Market depreciation

Cost depreciation

Functional depreciation