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University of Toronto St. George
Rotman Commerce
Xin Baohua

CHAPTER 10PROPERTY PLANT AND EQUIPMENT ACCOUNTING MODEL BASICSMULTIPLE CHOICEConceptualAnswerNoDescriptiond1Definition of plant assetsb2Characteristics of property plant and equipment assetsd3Characteristics of property plant and equipment assetsc4Valuation of property plant and equipment assetsa5Additions to land costsb6Definition of land costsd7Treatment of land improvementsd8Determine cost of land used as a parking lotc9Determine cost of delivery trucka10Determine cost of machineryb11Classification of small tools and containersd12Capitalization of borrowing costsd13Capitalization of borrowing costsb14Treatment of restoration costsc15Features of the cost modeld16Features of the revaluation modelb17Capitalization of borrowing costsa18Features of the revaluation modeld19Capitalized borrowing costsd20Plant asset acquired by issuance of stockd21Valuation of nonmonetary exchangesa22Gain recognition on a nonmonetary exchangec23Gain recognition on a nonmonetary exchangeb24Accounting for donated assetsb25Valuation of donated assetsd26Identify conditions for capital expendituresc27Capital expenditured28Identification of a capital expenditurea29Identification of a capital expenditureThis topic is dealt with in an Appendix to the chapterTest BankChapter 10Copyright2010 John WileySons Canada LtdUnauthorized copying distribution or transmission of this page is prohibitedTest Bank for Intermediate Accounting Ninth Canadian Edition102MULTIPLE CHOICEComputationalAnswerNoDescriptionc30Calculate cost of land acquiredb31Determine cost of landd32Determine cost of buildingd33Calculate cost of land and buildingb34Calculate average accumulated expendituresa35Calculate amount of borrowing costs to be capitalizedd36Calculate weightedaverage accumulated expendituresb37Calculate weightedaverage accumulated expendituresd38Calculate weightedaverage accumulated expendituresd39Calculate actual interest cost incurred during yearc40Calculate borrowing costs to be capitalizedb41Application of the fair value modela42Application of the fair value modelc43Calculate cost of truck purchaseda44Calculate cost of machine purchasedd45Allocation of cost of a lump sum purchaseb46Calculate cost of machine purchasedd47Acquisition of equipment by exchange of shares held as an investmentb48Exchange of similar assetsb49Exchange of similar assetsgainb50Application of the revaluation modeld51Application of the revaluation modela52Application of the revaluation modelb53Components of PPE assetsc54Components of PPE assetsd55Components of PPE assetsc56Application of the cost modelb57Capitalization of exploration costs and discovery valuesMULTIPLE CHOICECPA AdaptedAnswerNoDescriptionc58Determine cost of landb59Classification of sale of buildingb60Determine borrowing costs to be capitalizeda61Valuation of a nonmonetary exchangea62Exchange of similar assetslossd63Accounting for donated assetsd64Costs subsequent to acquisitiona65Valuation of replacement equipmentTest Bank Chapter 10Copyright2010 John WileySons Canada LtdUnauthorized copying distribution or transmission of this page is prohibited103Acquisition of Property Plant and EquipmentEXERCISESItemDescriptionE1066Plant asset accountingE1067Capitalization of borrowing costsE1068Capitalization of interestE1069Application of the revaluation modelE1070Asset exchange with commercial substanceE1071Donated assetsE1072Measurement modelsE1073Application of the fair value modelE1074Asset AcquisitionE1075ExpenditureE1076Non interest bearing noteE1077Non monetary transactionE1078Asset ExchangePROBLEMS ItemDescriptionP10779Deferred paymentsP1080Fair value modelP1081Capitalization of borrowing costsP1082Capitalization of borrowing costsP1083Nonmonetary exchangeP1084Revaluation modelP1085Nonmonetary exchangeP1086Nonmonetary exchangeP1087Nonmonetary exchangeTest BankChapter 10Copyright2010 John WileySons Canada LtdUnauthorized copying distribution or transmission of this page is prohibited
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