building during 2004 was $ 40,000. What amount of interest cost should Cole capitalize?
8. Many years after constructing a plant asset, management spent a significant sum on the asset. Which of the following types of expenditures should be capitalized in this instance:
9. Which of the following is a not requirement for an asset to be categorized as a plant asset.
10. Zahn Corp.' s comprehensive Balance Sheet at December 31, 2005 and 2004 reported accumulated depreciation balances of $ 800,000 and $ 600,000, respectively. Property with a cost of $ 50,000 and a carrying amount of $ 40,000 was the only property sold in 2005. Depreciation charged to operations in 2005 was:
11. Talton Co. installed new assembly line production equipment at a cost of $ 185,000. Talton had to rearrange the assembly line and remove a wall to install the equipment. The rearrangement cost was $ 12,000 and the wall removal cost was $ 3,000. The rearrangement did not increase the life of the assembly line but it did make it more efficient. What amount of these costs should be capitalized by Talton?
12. The original cost of an inventory item is above the replacement cost. The inventory item ' s replacement cost is above the net realizable value. Under the lower of cost or market method, the inventory item should be valued at
13. When marking up a specific line of household items for resale, a retailer computes its markup as 40 % of cost. For purposes of