ACCT 303 Week 4 Midterm exam NEW NEW NEW 2016
1. (TCO 1) The capitalized cost of equipment excludes:
2. (TCO 1) On July 1, 2011, Larkin Co. purchased a $400,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2011 as follows:
What would be the balance in the land account as of December 31, 2011?
3. (TCO 3) In a nonmonetary exchange of equipment, if the exchange has commercial substance, a gain is recognized if:
4. (TCO 1) Interest may be capitalized:
5. (TCO 3) Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively.
Assuming that the exchange has commercial substance, Horton would record land-new at and record a gain/(loss) of:
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