ACCT 212 Week 6 Quiz

1. Question: Which of the following expenditures should … as an asset? Interest costs during the construction period of a new building. 2. Question: A company purchased land and building from a seller for $900,000. A separate appraisal reveals the fair value of the land to … $200,000 and the fair value of the building to … $800,000. For what amount would the company record land at the time of purchase? 3. Question: Kansas Enterprises … equipment for $80,500 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $7,350 at the end of ten years. Using the straight-line method, depreciation expense for 2021 would … : Cost of Equipment: $80,500 Less: salvage value: $7,350 Depreciatable value: $73,150 Estimated Life: 10 years 4. Question: Kansas Enterprises … equipment for $74,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $7,800 at the end of five years. Using the double-declining balance method, depreciation expense for 2021 would … : (Do not round your intermediate calculations) 5. Question: Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Western account for each of these expenditures? 6. Question: Which of the following is not a current liability? An … line of credi