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