231.Under U.S. GAAP
a.Property, plant, and equipment may not be revalued.
b.Component depreciation is not required.
c.Research and development costs are expensed as incurred.
d.All of these answer choices are correct.
232.Which of the following statements concerning IFRS and U.S. GAAP is true?
a.IFRS permits revaluation of all intangible assets, whereas U.S. GAAP prohibits revaluation of intangible assets.
b.Gains on exchange of assets when the exchange has commercial substance are recognized under both IFRS and U.S. GAAP.
c.Changes in depreciation method under IFRS are reported in current and future periods, under U.S. GAAP such changes are treated as prior period adjustments.
d.All of these answer choices are correct.
a233.A company decides to exchange its old machine and ¥1,540,000 cash for a new machine. The old machine has a book value of ¥1,260,000 and a fair value of ¥1,400,000 on the date of the exchange. The cost of the new machine would be recorded at
a.¥2,800,000.
b.¥2,940,000.
c.¥2,660,000.
d.cannot be determined.
a234.A company exchanges its old office equipment and $60,000 for new office equipment. The old office equipment has a book value of $42,000 and a fair value of $30,000 on the date of the exchange. The cost of the new office equipment would be recorded at
a.$102,000.
b.$90,000.
c.$72,000.
d.cannot be determined.
a
235.In an exchange of plant assets that has commercial substance, any difference between the fair value and the book value of the old plant asset is
a.recorded as a gain or loss.
b.recorded if a gain but is deferred if a loss.
c.recorded if a loss but is deferred if a gain.
d.deferred if either a gain or loss.
a236.Gains on an exchange of plant assets that has commercial substance are
a.deducted from the cost of the new asset acquired.
b.deferred.
c.not possible.
d.recognized immediately.
a237.Losses on an exchange of plant assets that has commercial substance are
a.not possible.
b.deferred.
c.recognized immediately.
d.deducted from the cost of the new asset acquired.
a238.The cost of a new asset acquired in an exchange that has commercial substance is the cash paid plus the
a.book value of the old asset.
b.fair value of the old asset.
c.book value of the asset acquired.
d.fair value of the new asset.
239.The cost of land includes all of the following
except
a.real estate brokers’ commissions.
b.closing costs.
c.accrued property taxes.
d.parking lots.
240.A term that is not synonymous with property, plant, and equipment is
a.plant assets.
b.fixed assets.
c.intangible assets.
d.Plant and equipment.