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Huffman Corporation constructed a building

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Huffman Corporation constructed a building 1. During self-construction of an asset by Samuelson Company, the following were among the costs incurred: Fixed overhead for the year $1,000,000 Portion of $1,000,000 fixed overhead that would be allocated to asset if it were normal production 40,000 Variable overhead attributable to self-construction 35,000 What amount of overhead should be included in the cost of the self-constructed asset? a. $ -0- b. $35,000 c. $40,000 d. $75,000 2. During self-construction of an asset by Richardson Company, the following were among the costs incurred: Fixed overhead for the year $1,000,000 Portion of $1,000,000 fixed overhead that would be allocated to asset if it were normal production 60,000 Variable overhead attributable to self-construction 55,000 What amount of overhead should be included in the cost of the self-constructed asset? a. $ -0- b. $ 55,000 c. $ 60,000 d. $115,000 3. Mendenhall Corporation constructed a building at a cost of $10,000,000. Average accumulated expenditures were $4,000,000, actual interest was $600,000, and avoidable interest was $300,000. If the salvage value is $800,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is a. $237,500. b. $245,000. c. $257,500. d. $337,500. 4. Messersmith Company is constructing a building. Construction began in 2010 and the building was completed 12/31/10. Messersmith made payments to the construction company of $1,000,000 on 7/1, $2,100,000 on 9/1, and $2,000,000 on 12/31. Average accumulated expenditures were a. $1,025,000. b. $1,200,000. c. $3,100,000. d. $5,100,000. 5. Huffman Corporation constructed a building at a cost of $20,000,000. Average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $600,000. If the salvage value is $1,600,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is a. $475,000. b. $490,000. c. $515,000. d. $675,000. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Huffman Corporation constructed a building

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