Which of the following statements regarding the acquisition of PP&E is false? A. For a self constructed asset, capitalized interest can exceed actual interest cost. B. If a long-lived asset is...

Which of the following statements regarding the acquisition of PP&E is false? A. For a self constructed asset, capitalized interest can exceed actual interest cost. B. If a long-lived asset is acquired and will be paid over a number of years, the time value of money should be considered. C. The general rule of PP&E valuation is to value the asset received at the fair market value of what was given up. D. The acquisition cost of land should include all things that prepared it for it's use including excavation.  In interest capitalization related to self constructed assets, all of the following must occur before the capitalization window begins except: A. Expenditures for the assets have been incurred B. Depreciation of the asset being built has been recognized C. Activities that are necessary to get the asset ready for its intended use are in progress D.Interest has to be incurred


Extracted text: Question 1 Which of the following statements regarding the acquisition of PP&E is false? Answers: For a self constructed asset. capitalized interest can exceed actual interest cost. If a long-lived asset is acquired and will be paid over a number of years. the time value of money should be considered. The general rule of PP&E valuation is to value the asset received at the fair market value of what was given up. The acquisition cost of land should include all things that prepared it for it's use including excavation. Question 2 In interest capitalization related to self constructed assets, all of the following must occur before the capitalization window begins except: Answers: Expenditures for the assets have been incurred Depreciation of the asset being built has been recognized Activities that are necessary to get the asset ready for its intended use are in progres Interest has to be incurred