2. If a corporation purchases land and building and subsequently tears down the building and uses the property as a parking lot, the proper accounting treatment of the cost of the building would depend on A) the intention of management for the property when the building was acquired.                                                                                                             B) the significance of the cost allocated to the building in relation to the combined cost of the land and building.                                                            C) the length of time for which the building was held prior to its demolition. D) the contemplated future use of the parking lot.

Which statement concerning depreciation is false? a.The only property that has a determinable life is depreciable.   B.Land is not depreciable.   C.Intangible assets' capital costs are recovered through amortization, much like depreciation.   D.Personal property converted to business use is not depreciable since it was once used for personal purposes.

C & M Securities made several expenditures during the current fiscal year, including the following:(a)For each of the items listed below, indicate whether the cost should be debited to land, buildings, equipment, land improvements, or an expense account.     Amount   Description of Expenditure     1.   $150,000   Acquisition of a piece of land to be used as a building site                                                              No effectEquipmentBuildingExpense or Land improvementsLandExpenseExpense or BuildingsLand improvements 2.   3,000   Demolition of a small building on the land, to make way for the new building                                                              Expense or BuildingsNo effectLand improvementsBuildingExpenseEquipmentLandExpense or Land improvements 3.   7,500   Levelling of the land to prepare it for construction of the new building                                                              No effectLand improvementsExpense or Land…

Which costs would most likely be capitalized in the “Land Improvements” account? Costs associated with clearing the land for its intended business use Costs associated with paving and fencing on the land Costs associated with constructing a building on the land

Which of the following items may be treated as excluded costs from the amortization base for a full cost company? Group of answer choices A. Dry hole costs on unproved properties B. Delay rentals on unproved properties C. Impairment costs on unproved properties D. Abandonment costs of unproved properties

Which of the following statements is false? A.For a self constructed asset, capitalized interest should never exceed actual interest cost. B.A loss on exchange will always be recognized regardless of commercial substance. C.The cost to build an addition to an existing building should be expensed immediately. D.If a long-lived asset is acquired and will be paid over a number of years, the time value of money should be considered.