1. Acme purchased a property that included both land and a building for $200,000. Acme hired an appraiser who determined that the market value of the land was $140,000 and the market value of the building was $50,000. At what amount should Acme record the building cost?
$147,368
$52,632
$200,000
$140,000
2. A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the average-cost inventory costing method, what is the amount of ending inventory on December 31?
$1,000
$1,250
$2,250
$1,500
3. Which of the following principles are reflected in the lower-of-cost-or-market rule?
Accounting conservatism
Materiality concept
Disclosure principle
Consistency principle
4. Which of the following intangible assets bars other manufacturers from using the same name for a product?
Trademark
Patent
Copyright
Franchise
5. A company that uses the perpetual inventory method purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, net/30. The company paid the shipper $100 cash for Freight in. The company then returned $200 of damaged goods and got an allowance from the vendor. Company paid the vendor 8 days after the sale. Assuming this was the only transaction affecting inventory, and no beginning balance, what would the cost basis of the inventory be?
$1,764
$1,864
$2,100
$1,900