Which of the following items are plant assets? (Check all that apply.)
Multiple select question.
Equipment being used in operations
Land held for expansion
Building being used for operations
Equipment with no value - correct_answEquipment being used in operations
Building being used for operations
Plant assets should be recorded at cost, including all normal and reasonable
expenditures necessary to get the asset in place and ready for its intended use.
This would include which of the following costs? (Check all that apply.)
Multiple select question.
Shipping charges
Fines incurred for failing to get the correct permits
Repairs necessary for damages incurred during installation
Testing
, Assembling - correct_answShipping charges
Testing
Assembling
The cost at which a company records purchases of machinery and equipment
should include which of the following? (Check all that apply.)
Multiple select question.
Purchase price
Shipping fees
Installation
Taxes
Operating costs - correct_answPurchase price
Shipping fees
Installation
Taxes
Wen Co. purchased a building for $200,000. Wen paid $20,000 in lawyer and title
fees. Wen also paid an additional $15,000 to modify the building in order to
accommodate his business needs. Wen should record the cost of the building at:
Multiple choice question.
$200,000
$235,000
$220,000
Multiple select question.
Equipment being used in operations
Land held for expansion
Building being used for operations
Equipment with no value - correct_answEquipment being used in operations
Building being used for operations
Plant assets should be recorded at cost, including all normal and reasonable
expenditures necessary to get the asset in place and ready for its intended use.
This would include which of the following costs? (Check all that apply.)
Multiple select question.
Shipping charges
Fines incurred for failing to get the correct permits
Repairs necessary for damages incurred during installation
Testing
, Assembling - correct_answShipping charges
Testing
Assembling
The cost at which a company records purchases of machinery and equipment
should include which of the following? (Check all that apply.)
Multiple select question.
Purchase price
Shipping fees
Installation
Taxes
Operating costs - correct_answPurchase price
Shipping fees
Installation
Taxes
Wen Co. purchased a building for $200,000. Wen paid $20,000 in lawyer and title
fees. Wen also paid an additional $15,000 to modify the building in order to
accommodate his business needs. Wen should record the cost of the building at:
Multiple choice question.
$200,000
$235,000
$220,000
