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Component of land cost, like kind exchange, interest, R&D

1.
Simons Company purchased land to build a new factory. The following expenditures were made in conjunction with the land purchase:

Purchase price of land $150,000
Real estate commission of 7% of the purchase price
Land survey $5,000
Back Taxes $5,000

What is the value of the land?

a) $160,000
b) $160,500
c) $165,500
d) $170,500

2.
During 2011, Burr Co made the following expenditures related to the acquisition of land and the construction of a building:

Purchase price of land $60,000
Legal fees for contracts to purchase land $ 2,000
Architect's fees $ 8,000
Demolition of old building on site $ 5,000
Sale of scrap from old building $3,000
Construction cost of new building (fully completed) $350,000

What amounts should be recorded as the initial values of the land and building?

Land Building
a) $60,000 $360,000
b) $62,000 $360,000
c) $64,000 $358,000
d) $65,000 $362,000

4.
Amble Inc exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange has commercial substance. At what amount Amble record the truck received?

a) 12,000
b) 15,000
c) 20,000
d) 25,000

6.
Cole Co began constructing a building for its own use in January 2011. During 2011, Cole incurred interest of $50,000 on specific construction debt, and $20,000 on other borrowings. Interest computed on the weighted average amount of accumulated expenditures for the building during 2011 was $40,000. What amount of interest should Cole capitalize?

a) $20,000
b) $40,000
c) $50,000
d) $70,000

8.
During the current year Orr Company incurred the following costs:
Research and development services
Performed by Key Corp for Orr $150,000
Design, construction and testing of preproduction
Prototypes and models $200,000
Testing in search for new products or process alternatives $175,000

In its income statement for the current year, what amount should Orr report as research and development expense?
a) $150,000
b) $200,000
c) $350,000
d) $525,000

$2.19