1.A company purchased land for $540000 cash. Real estate brokers' commission was $20000 and$47000 was spent for demolish...
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1.
A company purchased land for $540000 cash. Real estate brokers' commission was $20000 and
$47000 was spent for demolishing an old building on the land before construction of a new building
could start. Under the historical cost principle, the cost of land would be recorded at
$587000.
$560000.
$540000.
$607000.
2.
Cullumber Company purchases land for $150000 cash. Cullumber assumes $4800 in property taxes
due on the land. The title and attorney fees totaled $3100. Cullumber has the land graded for
$3400. They paid $22000 for paving of a parking lot. What amount does Cullumber record as the
cost for the land?
$161300.
$183300.
$150000.
$156500.
3.
Carla Vista Co. purchases a new delivery truck for $64000. The sales taxes are $4200. The logo of
the company is painted on the side of the truck for $1600. The truckâs annual license is $130. The
truck undergoes safety testing for $280. What does Carla Vista record as the cost of the new truck?
$68080.
$70080.
$68200.
$70210.
4.
The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use
360 days for calculation.)
$15120.
$1260.
$3780.
$7560.
A company purchased land for $540000 cash. Real estate brokers' commission was $20000 and
$47000 was spent for demolishing an old building on the land before construction of a new building
could start. Under the historical cost principle, the cost of land would be recorded at
$587000.
$560000.
$540000.
$607000.
2.
Cullumber Company purchases land for $150000 cash. Cullumber assumes $4800 in property taxes
due on the land. The title and attorney fees totaled $3100. Cullumber has the land graded for
$3400. They paid $22000 for paving of a parking lot. What amount does Cullumber record as the
cost for the land?
$161300.
$183300.
$150000.
$156500.
3.
Carla Vista Co. purchases a new delivery truck for $64000. The sales taxes are $4200. The logo of
the company is painted on the side of the truck for $1600. The truckâs annual license is $130. The
truck undergoes safety testing for $280. What does Carla Vista record as the cost of the new truck?
$68080.
$70080.
$68200.
$70210.
4.
The interest charged on a $252000 note payable, at the rate of 6%, on a 90-day note would be (Use
360 days for calculation.)
$15120.
$1260.
$3780.
$7560.
