1.Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately
a) on routinely manufactured goods as well as self-constructed assets.
b) on self-constructed assets from the date an entity formally adopts a plan to build a discrete project.
c) whether or not there is specific borrowing for the construction.
D) whether or not there are actual interest costs incurred.
2.The legal life of goodwill is
a. 70 years.
b. 50 years.
c. 20 years.
d. indefinite.
3.Our company purchased equipment for $36,000 on January 1, 2013. The equipment is expected to have a 5-year life and a residual value of $3,000. Using the straight-line method, accumulated depreciation at December 31, 2014 would be
a. $19,800.
b. $36,000.
c. $6,600.
d. $13,200.
4.Our company purchased equipment for $36,000 on January 1, 2013. The equipment is expected to have a 5-year life and a residual value of $3,000. Using the straight-line method, accumulated depreciation at December 31, 2014 would be
a. $19,800.
b. $36,000.
c. $6,600.
d. $13,200.