Hotel and build a new luxury hotel on the site. The cost of the Holiday Hotel should be 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) The period of time during which interest must be capitalized ends when 23) To be consistent with the historical cost principle, overhead costs incurred by an enterprise constructing its own building should be 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 and gives cash in the exchange. The exchange is NOT expected to cause 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 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) Which of the following is NOT a condition that must be satisfied before interest capitalization can begin on a qualifying asset? 28) Which of the following most accurately reflects the concept of depreciation as used in accounting? 29) Which of the following principles best describes the conceptual rationale for the methods of matching depreciation expense with revenues? 30) The major difference between the service life of an asset and its physical life is that 31) Starr Company purchased a depreciable asset for $ 150,000. The estimated salvage value is $ 10,000, 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? 32) Bigbie Company purchased a depreciable asset for $ 600,000. The estimated salvage value is $ 30,000, and the estimated useful life is