Question 1

Property, Plant & Equipment refers to both tangible and intangible assets.

Accepted Answer

A) True 
 B)False

Question 2

On January 1st, 2008, ABC Inc. purchased a copper mine for $400,000. The company is required by provincial law to restore the land on which the mine is located to its initial condition at the end of the mine's ten year useful life. Restoration costs are estimated to be $35,000. ABC is subject to an interest rate of 5%. Prepare the journal entries required on January 1st and December 31st, 2008. Round all entries to the nearest dollar.

Accepted Answer

Question 3

Asset A is owned by TC and has a book value at 12/31/2012 of $9,000. TC exchanged Asset A and $60,000 cash with CE for Asset B At 12/31/2013, the market value of Asset A is $20,000 and the list price of Asset B is $90,000. Assuming that these assets are dissimilar in nature, at what amount should Asset B be recorded by TC?

Accepted Answer

A)  $69,000 
B)  $70,000 
C)  $80,000 
D)  $90,000 
A)  $69,000 
B)  $70,000 
C)  $80,000 
D)  $90,000

Question 4

Under the fair value model, buildings must be depreciated over their useful lives.

Accepted Answer

A) True 
 B)False

Question 5

When a capital asset (such as land or buildings) is purchased, any unpaid property taxes (for the period prior to the purchase date) that are paid by the purchaser should be recorded as part of the cost of the asset.

Accepted Answer

A) True 
 B)False

Question 6

An exchange of similar assets with no cash involved:

Accepted Answer

A)  records the cost of the asset received at the book value of the asset given. 
B)  records the asset received at the market value of the asset given. 
C)  culminates an earnings process. 
D)  results in recognition of a loss or gain to each party. 
A)  records the cost of the asset received at the book value of the asset given. 
B)  records the asset received at the market value of the asset given. 
C)  culminates an earnings process. 
D)  results in recognition of a loss or gain to each party.

Question 7

Start-u and relocation costs generally meet the criteria for capitalization under IFRS.

Accepted Answer

A) True 
 B)False

Question 8

All of the following items are identifiable intangible assets, except:

Accepted Answer

A)  trade names. 
B)  copyrights. 
C)  patents. 
D)  goodwill. 
A)  trade names. 
B)  copyrights. 
C)  patents. 
D)  goodwill.

Property, Plant & Equipment refers to both tangible and intangible assets.

Under the fair value model, buildings must be depreciated over their useful lives.

When a capital asset (such as land or buildings) is purchased, any unpaid property taxes (for the period prior to the purchase date) that are paid by the purchaser should be recorded as part of the cost of the asset.

An exchange of similar assets with no cash involved:

Start-u and relocation costs generally meet the criteria for capitalization under IFRS.

All of the following items are identifiable intangible assets, except:

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters

Exam 9: Long-Lived Assets

Property, Plant & Equipment refers to both tangible and intangible assets.

Under the fair value model, buildings must be depreciated over their useful lives.

When a capital asset (such as land or buildings) is purchased, any unpaid property taxes (for the period prior to the purchase date) that are paid by the purchaser should be recorded as part of the cost of the asset.

An exchange of similar assets with no cash involved:

Start-u and relocation costs generally meet the criteria for capitalization under IFRS.

All of the following items are identifiable intangible assets, except:

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

The Statement of Cash Flows

Revenue Recognition

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Depreciation, Amortization, and Impairment

Financial Instruments: Investments in Bonds and Equity Securities

Filters