MGMT 20000 Study Guide - Quiz Guide: Intangible Asset, Property Insurance, Current Asset
23 Mar 2019
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A company should classify a building and land held for a new plant facility as: an investment, a current asset, an intangible asset, property, plant, and equipment. Kensal green, inc. purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a new building. Driveways and parking lots are properly included in the land improvements account because they are subject to depreciation: true, false. Boiler catering, inc. purchased a commercial dishwasher by paying cash of ,000. The dishwasher"s fair value on the date of the purchase was ,000. The company incurred in transportation costs, installation fees, and paid for annual property insurance for the equipment. What amount will the catering company record the dishwasher: ,250, ,250, ,000, ,000. Hayne company purchased land, building, and equipment for ,000. The estimated fair values of the land, building, and equipment are ,000, ,000, and ,000, respectively.
