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WGU D104 PART 1 UNIT 2 & 3 QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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WGU D104 PART 1 UNIT 2 & 3 QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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WGU D104 PART 1 UNIT 2 & 3QUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
Which value is used for the cost basis of a forklift that was acquired by the issuance of common stock? -
ANSWER Market price of the stock
What is the result of capitalizing all research and development costs associated with internally
created intangible assets? - ANSWER Assets are overstated, and expenses are understated
Company X purchased land and a building for a lump sum cost of $420,000. The land has a fair market
value of $160,000, and the building has a fair market value of $320,000. - ANSWER $280,000
Which description accurately characterizes intangible assets? - ANSWER They lack physical substance
Which method is used to allocate the price of intangible assets over time under generally accepted
accounting principles (GAAP)? - ANSWER Straight -line
Which item is an asset's involuntary conversion? - ANSWER Condemnation of property
A $500,000 upgrade was made to a piece of machinery that increased its efficiency by 75% without
increasing its useful life.
How should the cost of this improvement be recorded? - ANSWER Capitalized
Which annual test is performed for indefinite life intangible assets? - ANSWER Impairment
A company replaces the floors in an existing building that extends the useful life of the building
without improving the quantity or quality of products produced in it. - ANSWER Accumulated
Depreciation
. A company purchases land and a building for $400,000 in a lump sum transaction.
How should these assets be valued? - ANSWER Use the relative fair market values of each asset
- ANSWER
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