21 ) If a corporation purchases a lot and building and subsequently tears down the building and uses the property as a parking lot , the proper accounting treatment of the cost of the building would depend on 22 ) To be consistent with the historical cost principle , overhead costs incurred by an enterprise constructing its own building should be 23 ) When computing the amount of interest cost to be capitalized , the concept of " avoidable interest " refers to 24 ) The period of time during which interest must be capitalized ends when 25 ) Construction of a qualifying asset is started on April 1 and finished on December 1 . The fraction used to multiply an expenditure made on April 1 to find weighted-average accumulated expenditures is 26 ) When funds are borrowed to pay for construction of assets that qualify for capitalization of interest , the excess funds NOT needed to pay for construction may be temporarily invested in interest-bearing securities . Interest earned on these temporary investments should be 27 ) When a plant asset is acquired by issuance of common stock , the cost of the plant asset is properly measured by the 28 ) If an industrial firm uses the units-of-production 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 29 ) The term " depreciable cost ," or " depreciable base ," as it is used in accounting , refers to 30 ) Which of the following most accurately reflects the concept of depreciation as used in accounting ? 31 ) Prentice Company purchased a depreciable asset for $ 200,000 . The estimated salvage value is $ 20,000 , and the estimated useful life is 10 years . The straight-line method will be used for depreciation . What is the depreciation base of this asset ? 32 ) Pine Company purchased a depreciable asset for $ 360,000 . The estimated salvage value is $ 24,000 , and the estimated useful life is 8 years . The double-declining balance method will be used for depreciation . What is the depreciation expense for the second year on this asset ?