WGU D104 Part 1 Unit 2 & 3 Questions and verified answers 2024
Which value is used for the cost basis of a forklift that was acquired by the issuance of common stock? > Market price of the stock
What is the result of capitalizing all research and development costs associated with internally created intangible assets? > Assets are overstated, and expenses are understated
Company X purchased land and a building for a lump sum cost of $420,000. The land has a fair market value of $160,000, and the building has a fair market value of $320,000. > $280,000
Which description accurately characterizes intangible assets? > They lack physical substance
Which method is used to allocate the price of intangible assets over time under generally accepted accounting principles (GAAP)? > Straight >line
Which item is an asset's involuntary conversion? > Condemnation of property
A $500,000 upgrade was made to a piece of machinery that increased its efficiency by 75% without increasing its useful life.
How should the cost of this improvement be recorded? > Capitalized
Which annual test is performed for indefinite life intangible assets? > Impairment
A company replaces the floors in an existing building that extends the useful life of the building without improving the quantity or quality of products produced in it. > Accumulated Depreciation
. A company purchases land and a building for $400,000 in a lump sum transaction.
How should these assets be valued? > Use the relative fair market values of each asset >
Which value is used for the cost basis of a forklift that was acquired by the issuance of common stock? > Market price of the stock
What is the result of capitalizing all research and development costs associated with internally created intangible assets? > Assets are overstated, and expenses are understated
Company X purchased land and a building for a lump sum cost of $420,000. The land has a fair market value of $160,000, and the building has a fair market value of $320,000. > $280,000
Which description accurately characterizes intangible assets? > They lack physical substance
Which method is used to allocate the price of intangible assets over time under generally accepted accounting principles (GAAP)? > Straight >line
Which item is an asset's involuntary conversion? > Condemnation of property
A $500,000 upgrade was made to a piece of machinery that increased its efficiency by 75% without increasing its useful life.
How should the cost of this improvement be recorded? > Capitalized
Which annual test is performed for indefinite life intangible assets? > Impairment
A company replaces the floors in an existing building that extends the useful life of the building without improving the quantity or quality of products produced in it. > Accumulated Depreciation
. A company purchases land and a building for $400,000 in a lump sum transaction.
How should these assets be valued? > Use the relative fair market values of each asset >
