F3

Question 1

capitalized

Answer 1

any cost incurred to make and plant asset ready

Question 2

rule

Answer 2

capitalize all costs necessary to put a fixed asset in place, in the requied condition at the proper time for its intended use.

capitalize costs that imporve the quality, efficiency, or productive capacity of fixed asset

Question 3

construction loans

Answer 3

capitalized (lower of actual interest vs total capitalized interest)

Question 4

lack of commercial substance (no gain/loss) except if boot recieved

Answer 4

cash 4000
new truck 9600
CR (8000*(4000cash/20000FV)1600 gain
cr Old truck

Question 5

lack of commercial substance (no gain/loss) except if boot recieved

old truck 12000
fv 20000
cash received 4000
(ginen truck cv 16K and fv 20k)

Answer 5

cash 4000
new truck 9600

CR (8000*(4000cash/20000FV)1600 gain
cr Old truck 12000