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WGU D104 Part 1 Unit 2 & 3 Leave the first rating Students also studied Terms in this set (11) Social SciencesEconomics Finance Save Intermediate Accounting II D104; Pr...16 terms AcidApplesPreview WGU D104 Intermediate Accounting...144 terms kristineburrow Preview D105 OA1 Study Guide 34 terms lbalchaPreview Pre-Ass 135 term chr Practice questions for this set Learn1 / 7Study using Learn Which description accurately characterizes intangible assets?Which value is used for the cost basis of a forklift that was acquired by the issuance of common stock?Market price of the stock What is the result of capitalizing all research and development costs associated with internally created intangible assets?Assets are overstated, and expenses are understated Choose an answer 1They are always subject to depreciation 2They are acquired for resale 3They lack physical substance4They are all subject to amortization Don't know?
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.
$280,000
Which description accurately characterizes intangible assets?They lack physical substance Which method is used to allocate the price of intangible assets over time under generally accepted accounting principles (GAAP)?Straight -line Which item is an asset's involuntary conversion? 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?Capitalized Which annual test is performed for indefinite life intangible assets?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.Accumulated Depreciation . A company purchases land and a building for $400,000 in a lump sum transaction.How should these assets be valued?Use the relative fair market values of each asset
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