1. A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400 and $5,850 was paid to remove an old building. What is the cost basis for the land?

Question

a. $90,600
b. $91,550
c. $88,150
d. $87,200

2. Which of the following would NOT qualify as a capital expenditure?
a. Overhauled an engine
b. Installed new parking lot
c. Replaced tires on company trucks
d. Replaced the warehouse roof

3. Equipment was purchased for $32,000. It has a useful life of 5 years and a residual value of $4,000. What is depreciation expense for year two under the double declining balance method?
a. $5,600
b. $6,720
c. $7,680
d. $12,800


4. A machine with a useful life of 10 years and a salvage value of $4,000 was purchased for $27,000. What is annual depreciation under the straight-line method?
a. $2,300
b. $2,700
c. $4,600
d. $5,400

5. If a fixed asset is sold and the book value is less than cash received, the company must __________.
a. Recognize a loss on the income statement under other expenses
b. Recognize a loss on the income statement under operating expenses
c. Recognize a gain on the income statement under other revenues
d. Gains and losses are not to be recognized upon the sale of fixed assets

6. Which of the following is NOT an intangible asset?
a. Goodwill
b. Trademark
c. Copyrights
d. Long-term receivable

7. A gain is recorded on the sale of fixed assets when __________.
a. The asset is sold for a price less than its book value
b. The assets book value is less than the cash received
c. A gain on sale is not permitted to be recognized
d. Accumulated depreciation is less than the cash received

8. A capital expenditure would appear on the __________.
a. Income statement under operating expenses
b. Balance sheet under fixed assets
c. Balance sheet under current assets
d. Income statement under other expenses

Thanks so much in advance, I really just need the answers, it's for homework... I can get the info behind them in class, I missed a whole week of class due to the flu!! ugh, thanks so so so much for anyone who answers this, any of them would be greatly appreciated!!!!!!!!