Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

problem 1: Gunawardena Ltd. has a building that it originally bought for $100,000. As of December 31, 2012, there is $10,000 of Accumulated Depreciation on the building (it was being straight-line depreciated over 10 years with no salvage value). On January 1, 2013, the company decides to change the remaining useful life to 5 years (starting now) with a $50,000 salvage value.

What will be the depreciation on the building in 2013?

a) $8,000
b) $20,000
c) $13,000
d) $10,000
e) $12,500

problem 2: On January 1, 2012, Krishnan Ltd. signed a three-year lease on a delivery truck. The lease requires annual payments of $29,103, which are due at the end of each year. Krishnan’s managers computed the present value of the lease payments as $75,000 using an effective interest rate of 8%. Krishnan had to use capital lease accounting treatment for the truck.

What was the total expense related to this lease during the fiscal year ended December 31, 2012?

a) $6,000
b) $31,000
c) $0
d) $29,103
e) $25,000

problem 3: After completing its preliminary financial statements for 2012, Alexander-Martin Inc. found a mistake in computing its straight-line Depreciation Expense. After fixing the mistake, Alexander-Martin’s Depreciation Expense was now $10,000 higher. Alexander-Martin is a US company with a 35% Federal Statutory Tax Rate.

How did the $10,000 increase in Depreciation Expense affect Net Income for 2012?

a) Net Income dropped by $10,000
b) Net Income increased by $3,500
c) Net Income dropped by $6,500
d) Net Income dropped by $3,500
e) Net Income increased by $10,000

problem 4: For the year ended 12/31/2013, Baumgart Corp. reported Net Income of $100,000, including $10,000 of Interest Expense on convertible debt. Baumgart had 10,000 common shares outstanding throughout 2013. Baumgart paid $4,000 of preferred dividends during 2013. Baumgart’s convertible debt is convertible into 2,000 shares of common stock. Baumgart is a US company with a 35% Federal Statutory Tax Rate.

What is Baumgart Corp.’s Diluted EPS for fiscal year 2013?

a) $8.83
b) $7.17
c) $8.29
d) $7.46
e) $8.54

problem 5: Nguyen Industries decides to sell an old piece of equipment and receives $5,000 cash for it. The original cost of the equipment was $50,000 and it had accumulated depreciation of $47,000 associated with it.

Which of the following items would be increased by the sale of the old equipment? (check all that apply)

a) Cash from Financing Activities
b) Cash from Operating Activities
c) Total Shareholders’ Equity
d) Total Assets
e) Cash from Investing Activities

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M94646

Have any Question? 


Related Questions in Accounting Basics

Ace lawn care module - mini practice problemjim graham

Ace Lawn Care Module - Mini Practice Problem Jim Graham started his career mowing lawns for neighbors while he was in junior high school. Jim worked summers for the local golf course while he was in high school and now t ...

Introductory accounting assignment question 1 - the

INTRODUCTORY ACCOUNTING ASSIGNMENT QUESTION 1 - The information given below was extracted from the books of KAISER TRADERS. REQUIRED: 1.1: Compare the Bank Statement with the Cash Receipts Journal and Cash Payments Journ ...

Write a paper about internal controlsassignmentcontent

Write a paper about internal controls Assignment Content Page - Introduction - Definition of internal controls(Books) - Components of internal control system(Books) - Examples of internal controls(Books or research paper ...

Question 1 the following are the selected entries for

Question 1 The following are the selected entries for Lehman Hospital for December 31, 2015 and 2014. Create Lehman Hospital's Balance Sheet. 2015 2014 Bonds Payable $64,000,000 $65,000,000 Current Assets 21,000,000 18,0 ...

Current designsas a service to its customers current

CURRENT DESIGNS As a service to its customers, Current Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant investment in the composite kayaks. To price the repair jobs, C ...

Assignmentexercise 1 treatment of nsf checkthe bank

Assignment Exercise 1 Treatment Of NSF check The bank statement of Stone Supplies included a $300 NSF check that one of Stone's customer had written to pay for services that were provided by Stone. Required a. Show the e ...

Unconventional and growing inccrazy craig cravath is a

UNCONVENTIONAL AND GROWING, INC. "Crazy" Craig Cravath is a somewhat eccentric yet enthusiastic businessman who believes in the social responsibility of business. Incidentally, he is also interested in making enough mone ...

Accounting information systems1 you have been asked by the

Accounting Information Systems 1. You have been asked by the CFO of the company where you work or previously worked to evaluate the use of a professional service organization for processing the company's payroll. Identif ...

Early morning on a bright day in mid-january 2009 james d

Early morning on a bright day in mid-January 2009, James D. White, CEO of Jamba Juice, was driving down highway 580 headed to Jamba Juice's Emeryville, California, headquarters. Unfortunately, today, White could not enjo ...

Question 1based upon the material covered from the readings

Question #1 Based upon the material covered from the readings and/or videos from Week 8, highlight the three most important concepts you learned this week and how each of these concepts will help you in appreciating the ...

  • 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