Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. Bay, Inc. purchased a new machine for $50,000 on March 28, 2004. The useful life was expected to be eight years and then they would sell it to the junk yard for $2,000. The machine was sold for $34,000 on October 2, 2008. Assume no depreciation in the year of purchase and a full year of depreciation in the year of sale. Assuming they use straight-line depreciation, what is the gain to be recorded at the time of sale?

2. DJ Corporation purchased a machine for $36,000, has an annual depreciation of $3,600. The machine has a book value on December 31, 2008 of $25,200. On May 1, 2009, the fair value of the machine is $23,500 and is exchanged for a similar machine with a fair value of $28,500 and the proper amount of cash is paid. What are the two journal entries need on May 1, 2009. (Hint: one is to update depreciation!)

3. The Mayfield Company purchased a tooling machine in 2000 for $30,000. The machine was being depreciated using the straight-line method over an estimated useful life of 20 years. At the beginning of 2010, when the machine had been in use for 10 years, the company paid $5,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life of the machine would be extended 5 years. What should be the depreciation expense recorded for this machine in 2010?

4. Solo Inc. bought a machine on January 1, 2000 for $100,000. The machines book value on July 1, 2010 is $52,750. Also on July 1, 2010 it is determined that the machines future cash flows totaled $50,000 and its fair value is $35,000. If no active market exists for the machine and the company does not plan to dispose of it, what should Solo, Inc. record as an impairment loss on July 1, 2010, if any?

5. In January 2010, the Julie Mine Company purchased a mineral mine for $3,400,000 with removable ore estimated at 4,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $800,000 of development costs preparing the mine for production. During 2010, 400,000 tons were removed and 375,000 tons were sold. What is the amount of depletion expense that Julie Mine should record for 2010?

6. Aristotle Company acquired a machine on January 1, 2010 at a cost of $32,000. The machine has an estimated salvage value of $2,000 at the end of its 4-year useful life. The machine is estimated to be useful for a total of 10,000 hours. In 2010 the machine hours were 1,200 hours and in 2011 the machine hours were 1,400 hours. Fill in the following chart.

Depreciation Method Depr. Expense 2010 Depr. Expense 2011 Book Value December 31, 2011
Straight-line
Sum-of-the-years'-digits
Double Declining Balance
Activity Method

7. Gruber Corporation purchased a patent from Proper Corporation on January 1, 2009, at a cost of $72,000. The useful life of the patent was estimated to be 10 years. Proper Corporation's unamortized cost was $75,000. In Gruber's 2009 income statement, the amortization expense would be what? Assume Gruber Corporation owns no other intangibles.

8. On March 31, 2009 AFJ, Inc. paid $6,000,000 to acquire Jacob Corporation. Jacob Corporation's March 31, 2009 balance sheet reports $6,100,000 of assets and liabilities of $2,500,000. All of the assets on Jacob's books approximate fair value except for land, which has a fair value that is $400,000 greater than its book value. What is the excess of cost over fair value of identifiable net assets of Acquired subsidiary that AFJ, Inc. should record as a result of this purchase?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M926042

Have any Question? 


Related Questions in Basic Finance

1 why must researchers use reliable measures2 why is it

1. Why must researchers use reliable measures? 2. Why is it virtually impossible to eliminate all measurement error from the measures we use in research? 3. What is the relationship between the reliability of a measure a ...

What is the excess burden of taxation why is there an

What is the excess burden of taxation? why is there an excess burden, and what factors affect the size of the excess burden for a specific tax? if several goods are to be tax, how should the taxes be distributed to minim ...

Examine the following case Examine the following case study:

Examine the following case study: http://www.finance.nsw.gov.au/ict/resources/nsw-government-digital-information-security-policy 1. Use a diagram (produced by the means of using Rationale, Visio or any other relevant sof ...

Discussionresearch a company with an international presence

Discussion Research a company with an international presence. Describe the type of work performed; measures that the company's industry area uses for productivity; and the pitfalls and promise that the metrics provide. W ...

1 how influential are corporate and personal taxes on

1. How influential are corporate and personal taxes on capital structure? Historically, have changes in American tax rates greatly affected debt ratios? 2. How do stock prices generally react to announcements of firms' c ...

1 in addition to the key words you should also be able to

1. In addition to the key words, you should also be able to define the following terms: third-variable problem directionality problem confounding variable random process placebo mundane realism experimental realism 2. De ...

There is an ongoing debate on the amount of regulation of

There is an ongoing debate on the amount of regulation of derivatives. What are your opinions on derivatives regulation? Should this market have increased regulation? Why or why not?

1 what are the main advantages and disadvantages to

1) What are the main advantages, and disadvantages, to entering a futures hedge? Explain your answer with reference to a futures contract on wheat. Assume the current price is 400 cents per bushel and the futures price i ...

Adama is a french manufacturer of photovoltaic panels the

Adama is a French manufacturer of photovoltaic panels. The company has a production plant in Rennes, which supplies four warehouses located in Angers, Bourges, Clermont-Ferrand and Montauban. The warehouses directly supp ...

Name several ways by which the loss of initial preload can

Name several ways by which the loss of initial preload can be reduced ? Roughly how much embedment relaxation could we expect from new parts used in a non-gasketed, steel joint? Define elastic interactions. How can elast ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen