Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

H1. Target recently spent a sizable amount for installation of new ramps in its

ID: 2460401 • Letter: H

Question

H1. Target recently spent a sizable amount for installation of new ramps in its corporate parking lot to meet government regulations. The cost of the ramps should be.:

a. added to the Land account. b. added to the land improvements account. c. added to the building account. d. none of the above.

2. Kroger has office furniture that cost $80. If the company has recorded depreciation on the furniture totaling $50, what is the gain or loss on disposal if it was sold for $34?

a. Gain of $4. b. Loss of $4. c. Gain of $46. d. Loss of $46. e. No gain or loss.

3. Expenditures that maintain the normal operating condition of an asset are:

a. added to the original asset account b. Debited to Accumulated Depreciation. c. Degerred and depreciated over the remaining life of the asset. d. Recorded as an expense when incurred. e. none of the above

Explanation / Answer

c. added to the building account

a.Gain of $4. Sale price-( Cost- Dep)=34-(80-50)

d. Recorded as an expense when incurred as there it does not increase the capacity of the asset