The purchase price for a land and building combined was $168,000. Appraisals indicate respective values of $30,000 and $150,000. The cost allocated to the land and building, respectively, should be (NOT ANS. A)
$28,000/140,000
$30,000/150,000
$84,000/84,000
$90,000/90,000
In accounting, depreciation refers to? (NOT ANS. D)
deterioration of a fixed asset
systematic and rational expensing of fixed asset cost
the obsolescence of a fixed asset
the decline in value of a fixed asset
In which section of the statement of cash flows would the effect of an impairment write-down be reported? (NOT ANS. D)
Operating
Investing
Financing
None of the above since no cash has been spent