24 ) When computing the amount of interest cost to be capitalized , the concept of “ avoidable interest ” refers to 25 ) The King- Kong Corporation exchanges one plant asset for a similar plant asset a nd gives cash in the exchange . The exchange is NOT expected to caus e a material change in the future cash flows for either entity . If a gain on the disposal of the old asset is indicated , the gain will 26 ) When a plant asset is acquired by issuance of common stock , the cost of the plant asset is properly measured by the 27 ) The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset and the exchange has commercial substance is usu ally recorded at 28 ) Which of the following principles best describes the conceptual ra tionale for the methods of matching depreciation expense with revenu es ? 29 ) If an industrial firm uses the units-ofproduction method for computing depreciation on its only plant asset , factory machinery , the credit to accumulated depreciation from period to period during the life of the firm will 30 ) Which of the following most accurately reflects the concept of de preciation as used in accounting ? 31 ) Prentice Company purchased a depreciable asset for $ 200,000 . Th e estimated salvage value is $ 20,000 , and the estimated useful life is 1 0 years . The straightline method will be used for depreciation . What is the depreciation ba se of this asset ? 32 ) Harrison Company purchased a depreciable asset for $ 100,000 . T he estimated salvage value is $ 10,000 , and the estimated useful life is 10 years . The straightline method will be used for depreciation . What is the depreciation ba se of this asset ? 33 ) Starr Company purchased a depreciable asset for $ 150,000 . The e stimated salvage value is $ 10,000 , and the estimated useful life is 8 ye ars . The doubledeclining balance method will be used for depreciation . What is the d epreciation expense for the second year on this asset ? 34 ) Costs incurred internally to create intangibles are