Question Details

The four subdivisions for property, plant, and equipment assets are 


1.	The four subdivisions for property, plant, and equipment assets are 
		a.	land, land improvements, buildings, and equipment.
		b.	intangibles, land, buildings, and equipment.
		c.	furnishings and fixtures, land, buildings, and equipment.
		d.	property, plant, equipment, and land.

	2.	The cost of land does not include
		a.	costs to clear the land.
		b.	annual property taxes.
		c.	accrued property taxes assumed by the purchaser.
		d.	legal fees.

	3.	Pippen Clinic purchases land for $90,000 cash. The clinic assumes $1,500 in property taxes due on the land. The legal fees totalled $1,000. The clinic has the land graded for $2,200. What amount does Pippen Clinic record as the cost for the land?
		a.	$92,200.
		b.	$90,000.
		c.	$94,700.
		d.	$92,500.

	4.	Cole Company buys land for $50,000 on 12/31/00. As of 3/31/01, the land has appreciated in value to $50,500. On 12/31/01, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2001?
		a.	$0.
		b.	$300.
		c.	$500.
		d.	$800.

	5.	Shannon Company acquires land for $56,000 cash. Additional costs are as follows:
			Removal of shed	$  1,430
			Filling and grading	1,500
			Residual value of lumber from shed	120
			Paving of parking lot	10,000
			Closing costs	560
	
		Shannon will record the acquisition cost of the land as
		a.	$56,000.
		b.	$57,690.
		c.	$59,610.
		d.	$59,370.




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