2- Multiple Choice Question 144
Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally
expensed when incurred. not recorded until they become material in amount. capitalized as a part of the cost of the asset. debited to the Accumulated Depreciation account 3- Multiple Choice Question 149
A gain or loss on disposal of a plant asset is determined by comparing the
original cost of the asset with the proceeds received from its sale. book value of the asset with the asset’ s original cost. book value of the asset with the proceeds received from its sale. replacement cost of the asset with the asset’ s original cost. 4- IFRS Multiple Choice Question 326
Salem Company hired Kirk Construction to construct an office building for £ 8,000,000 on land costing £ 2,000,000, which Salem Company owned. The building was complete and ready to be used on January 1, 2013 and it has a useful life of 40 years. The price of the building included land improvements costing £ 600,000 and personal