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

Accounting assignmentthree personal trainers at an upscale

Accounting Assignment Three personal trainers at an upscale health spa / resort in Sedona, Arizona, want to start a health club that specializes in health plans for people in the 50+ age range. The trainers Donna Rinaldi ...

Assignmentparticipation topic mandatoryinventory additional

Assignment Participation Topic (Mandatory) Inventory Additional Lecture Notes Class, Let me see if I can work up an example of how to calculate and use the different inventory methods. Let us use the following informatio ...

Problem 1 mat Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75

Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75 10/15/2017 1.0 1/15/2018 1.25 4/15/2018 1.5 7/15/2018 1.75 10/15/2018 2.0 1/15/2019 2.1 4/15/2019 2.2 7/15/2019 2.3 10/15/2019 2.4 Table 1: Continuou ...

Assignment the apportionmentyou are a census officer in a

Assignment: The Apportionment You are a census officer in a newly democratic nation and you have been charged with using the census data from the table below to determine how 100 congressional seats should be divided amo ...

Assignment descriptiona manufacturing company is thinking

Assignment Description A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including ...

Assignment reorganizationtarget corporation holds assets

Assignment: Reorganization Target Corporation holds assets with a fair market value of $4 million (adjusted basis of $2.2 million) and liabilities of $1.5 million. It transfers assets worth $3.7 million to Acquiring Corp ...

Assignmentguidelines for individual case assignment cutting

Assignment Guidelines for Individual Case Assignment: Cutting Edge Instructions This is an individual assignment and therefore must be completed by the individual student without outside assistance. In order to complete ...

The budget director for bird house unlimited inc has

The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for November 20XX. Estimated sales for November Bird House 28,600 units at $33 per u ...

Accounting anonymousabsorption and variable costing please

Accounting Anonymous Absorption and Variable Costing: Please respond to one of the following: Option 1 Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is u ...

Accounting assignmentgrant film products wishes to expand

Accounting Assignment Grant Film Products wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been ...

  • 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