1. The cost of land typically includes the purchase price and all of the following costs except A) private driveways and parking lots.                                                                 B) assumption of any liens or mortgages on the property.                                  C) street lights, sewers, and drainage systems cost.                                         D) grading, filling, draining, and clearing costs.

in estimating the value of a property using the sales comparison approach, you would typically not factor in Date of sale lot size age of building accrued depreciation

Land is not a depreciable asset because A.) land is not consumed over time B.) land can only appreciate over time C.) purchases of land are classified as liabilities and not assets D.) The cost of land cannot be accurately determined

1.Several expenditures are listed below: Yes No Landscaping а. b. Compensation for injury to construction worker с. Cost of overhaul before initial use d. Cost of tearing down a building on newly acquired land Land held as a plant site for future use е. f. Fully depreciated assets still being used g. Leasehold improvements h. Deposits on machinery not yet received Required: Indicate whether or not each expenditure would be included in the cost of property, plant, and equipment.

On January 1, Mitzu Company pays a lump-sum amount of $2,750.000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $762,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $366,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,921,500. The company also incurs the following additional costs. Cont to denolish Building 1 Cost of additional land grading Cost to construet Building 3, havinga useful life of 25 yeara and a $402,00 salvage value Cost of new Land Improvemente 2, having a 20-year ueeful 1ife and no ealvage value $343, 400 191, 400 2,242,000 173,000 Required: 1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column. Percent of Total Appralsed Value Total cost of acquisition Allocation of Purchase Price Apportioned Cost Appraised Value Land Building 2 Land…

The choices are: A. Statement 1 is true, Statement 2 is falseB. Statement 1 is false, Statement 2 is trueC. Both are trueD. Both are false

Which of the following costs is not typically capitalized as part of an asset’s cost? A) initial testing costs B) Purchase price of a service contract for routine maintenance costs C) Costs of insurance during the construction period D) Transportation costs while the asset was in transit E) Installation costs

Warner Borg Is a leading global supplier of highly engineered automotive systems and components primarily for powertrain applications. The following note was contained in its recent annual report: NOTE 3.INVENTORIES, NET aN of December 31 (in millionsm) Current Year $ 321.7 Prior Year $ 282.0 Raw materials and supplies Work in progess Finished goods FIFO inventories 90.2 79.2 117.6 116.8 528.7 478.8 (16.5) $ 462.3 LIFO reserve (18.4) $ 510.3 Total inventories, net Required: 1. What amount of ending inventory would have been reported in the current year if Warner Borg had used only FIFO? (Enter your answer in millions rounded to 1 decimal place.) 2. The cost of goods sold reported by Warner Borg for the current year was $6,598.9 million. Determine the cost of goods sold that would have been reported if Warner Borg had used only FIFO for both years. (Enter your answer in millions rounded to 1 decimal place.) 3. To lower the cash outflows for taxes, which of the following should the…

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Explain at least 3 intangible benefits that influence the decision to purchase new backhoes.