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 what are sources of economic profits for a company or an

1 .What are sources of economic profits for a company or an industry? 2. The following is an excerpt that appeared in an article "Strategic Planning: Not Just for Big Business" published at www.smallbusinessnotes. com/pl ...

1 what are the total assets and net income available to

1. What are the total assets and net income available to common shareholders for McDonald's Corp. (ticker: MCD:US) at the end of each of the last five fiscal years? Read this information from the annual financial stateme ...

1 what is the main advantage of the typical optimization

1. What is the main advantage of the typical optimization technique in comparison to simulation? 2. At what point in the typical analysis does the technique give way to the managerial review and evaluation process? 3. Co ...

Part a answer each of the following questions be sure to

Part A: Answer each of the following questions. Be sure to show all of your work and calculations. 1. Woody's Cafe's real estate tax of $1,110.85 was due on November 1, 2013. Due to financial problems, Woody was unable t ...

If a company is deciding between two projects and can only

If a company is deciding between two projects, and can only select one of the two projects, what evaluation techniques should this company use in the analysis of these projects? When selecting capital projects and there ...

Diamond inc recently paid a 110 dividend future dividends

Diamond, Inc recently paid a $1.10 dividend. Future dividends are projected at $1.14, $1.18, $1.22, and $1.25over the next four years, respectively. Beginning five years from now, the dividend is expected to increase by ...

Why is a combination of torque and angle measurement or

Why is a combination of torque and angle measurement or control so popular in mass production operations? What is meant by window control? What is meant by yield control in mass production applications? Does tightening a ...

Assignment exploring the sec 10-kwe are going to explore

Assignment: Exploring the SEC 10-K We are going to explore our company's SEC-10K. For most, if not all classmates, this will be the first time you have ever seen or read this type of report. Note: the SEC 10-K is an audi ...

What do we mean by the term torque reaction a right angle

What do we mean by the term torque reaction? A right angle nut runner is used to produce 500 ft-lb of torque on a bolt having a 7/8 -9 UNC thread. The tool is 18 in. long. How much reaction force, created by the reaction ...

The first four questions are true and false1 in order to

The first four questions are true and false 1. In order to tell the impact of a change in a constraint coefficient, the change must be made and then the model resolved. 2. Any change to the objective function coefficient ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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