what is the capitalized cost of the building?

1.
On Exercise 10 1, what is the capitalized cost of land?
$60000
$66000
$58000
$64000

2.
On Exercise 10 1, what would be the capitalized cost of the old building reported as a part of the cost of land?
$1500
$6000
$2000
$4000

3.
On Exercise 10 1, what is the capitalized cost of the building?
$517000
$512000
$505000
$520000

4.
From Exercise 10 1, what cost incurred is not part of the initial price of an operational asset?
Any cost of bringing the asset to its condition and location for use
Transportation cost paid by the seller to transfer the asset to the location it will be used
Expenditures for Installation
Testing of the equipment to establish working condition
Legal fees to establish title

5. From Exercise 10 1, which statement would be correct concerning property taxes due to the land purchase during the year?
Property taxes will always be part of the purchase price from the beginning of the period to date of purchase
Property taxes will part of a land acquisition from the date the building is recorded on the seller s books
Property taxes on the land for the period after acquisition are not part of the acquisition cost and are expensed in the period incurred.
Property taxes on the land for the period after acquisition are part of the acquisition cost and are capitalized in the period incurred.