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 incurredB. Depreciation of the asset being built has been recognizedC. Activities that are necessary to get the asset ready for its intended use are in progress D.Interest has to be incurred Question 1Which 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 2In 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 incurredDepreciation of the asset being built has been recognizedActivities that are necessary to get the asset ready for its intended use are in progresInterest has to be incurred

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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

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