Reference no: EM131779196

(1) A company sold for $3,000 a plant asset that had a cost of $10,000 and accumulated depreciation of $7,500. What gain or loss did the company experience?

• Loss of $7,000
• Gain of $3,000
• Loss of $500
• Gain of $500

(2) Which one of these statements is true?

• Totals of major classes of assets can be shown in the balance sheet, with asset details disclosed in the notes to the financial statements.
• Since intangible assets lack physical substance, they need to be disclosed only in the notes to the financial statements.
• Goodwill should be reported as a contra account in the stockholders' equity section.
• Intangible assets are typically combined with plant assets and natural resources and then shown in the property, plant, and equipment section.

(3) Marin Inc. purchases land for $450000 cash. The clinic assumes $4200 in property taxes due on the land. The title and attorney fees totaled $2400. The clinic had the land graded for $7400. What amount does Marin Inc. record as the cost for the land?

• $456600.
• $457400.
• $450000.
• $464000.