Question 4 1 pts Bridge City Consulting bought a building and land on which it i

Question

Question 4 1 pts Bridge City Consulting bought a building and land on which it is located for $182,000 cash. The land was appraised at $143,500 and the building for $61,500. Which of the following statements is true regarding the journal entry to record this purchase Land will be debited for $127,400 Building will be debited for $38,500 Land will be debited for $143,500 Building will be debited for $61,500 Question 5 1 pts The concept that states that "as long-term assets are used to generate revenues over a number of years, the cost of the asset should be spread over the same number of years" is known as: revenue recognition principle matching concept expenditure concept materiality Question 6 1 pts Wilson Inc. has purchased an asset that is guaranteed to last 12 years or your money back. The asset usually will last at least 20 years. Wilson plans on using the asset for 15 years before replacing it. What is the "useful" life of this asset for depreciation purposes? 15 years 20 years 12 years It depends.

Explanation / Answer

4 Allocation to Land =182000/(143500+61500)*143500= $127400 Allocation to Building =182000/(143500+61500)*61500= $54600 Option 1 Land will be debited for $127400 is correct 5 Matching concept. 6 Useful life is 15 years

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.