McGraw-Hill Education 2,000 Review Questions for the CPA Exam by Denise M. Stefano

Author:Denise M. Stefano
Language: eng
Format: epub
Publisher: McGraw-Hill Education
Published: 2017-08-11T04:00:00+00:00

154. The Fleer Corp. spends $100,000 for land and building. The land was recently appraised for $20,000, but the building was appraised for $120,000. If only $100,000 is spent, how much is allocated to the land?

A. $14,280

B. $16,160

C. $20,000

D. $15,840

155. Downey Co. purchased an office building and the land on which it is located for $800,000 cash and an existing $200,000 mortgage. For realty tax purposes, the property is assessed at $944,000, 65% of which is allocated to the building. At what amount should Downey record the building?

A. $944,000

B. $613,600

C. $520,000

D. $650,000

156. Under IFRS, assets are classified as investment property on the balance sheet if they are:

I. held for rental income

II. to be sold for a quick profit

A. I only

B. II only

C. Both I and II

D. Neither I nor II

157. LaRue Corp. is a Canadian corporation that uses IFRS. LaRue Corp. has the following account balances as of December 31, Year 5:

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.