Which of the Following Should Be Included in the Acquisition

question 225

Multiple Choice

Which of the following should be included in the acquisition cost of a piece of equipment?

• A) transportation costs
• B) installation costs
• C) testing costs prior to placing the equipment into production
• D) all of these

---

Definitions:

Non-controlling Interest

A financial interest in a subsidiary that is not enough to exert control over its policies, usually shown as a separate element of equity in the consolidated financial statements.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Common Shares

A type of equity security representing ownership in a corporation, entitling holders to dividends and voting rights, among other rights.

Non-controlling Interest

An interest in a corporation that is not held by the parent company, representing the share of equity owned by minority shareholders in the subsidiaries of a consolidated group.