Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1) Sunshine Company purchased the building on a tract of land and allocated the complete cost of the purchase to building. Usually it depreciates buildings over 20 years using straight-line method with zero residual value and doesn’t depreciate land. As of its accounting treatment of the purchase, Sunshine's income before taxes for the next 20 years will be:

A. unaffected
B. overstated
C. understated
D. in conformance with GAAP

2) Which of the following accounts will not be reported in Property, Plant, and Equipment section of the balance sheet?

A. Depreciation Expense, Buildings
B. Land
C. Buildings
D. Accumulated Depreciation, Buildings

3) On January 3, 2001, Florence Company sold machine for $15,000 which it had used for many years. Machine cost $43,000, and had accumulated depreciation of $18,000 at a time of sale. Compute gain or loss that will be reported on income statement for the sale of the machine?

A. gain of $10,000
B. loss of $3,000
C. loss of $10,000
D. gain of $3,000

4) Johnny Corp. purchased land and the building for combined cost of $900,000. Johnny should:

A. record $900,000 acquisition cost in an account called Buildings and Land.
B. record the $900,000 acquisition cost as an expense if separate acquisition costs can't be estimated.
C. allocate the $900,000 acquisition cost to separate Buildings and Land accounts based on fair market values
D. depreciate $900,000 acquisition cost, less any residual value, over an expected useful life of a building

5) Sam purchased equipment at abeginning of 2001 for $7,000. Sam decided to depreciate equipment over a 4-year period using the straight-line method. Sam estimated its salvage value at $1,000. Which of the statements is right regarding Sam 's financial statements at December 31, 2001?

A. Depreciation expense for 2001 is $1,400
B. The total accumulated depreciation is $2,500
C. The book value of the equipment is $5,500
D. The book value of the equipment is $6,000.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99901

Have any Question? 


Related Questions in Accounting Basics

Write a 700- to 1050-word summary of your teams discussion

Write a 700- to 1,050-word summary of your team's discussion regarding IFRS versus. GAAP. The summary should be structured in a subject-by-subject format. Include an introduction and a conclusion. Your discussion should ...

Write think about a specificissue or policy that you are

Write: Think about a specificissue or policy that you are interested in and/or that has impacted you personally. Use the assigned resources that are provided for this journal to gather information about the goals and pro ...

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 ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "free cash-flow valuations" please respond to the following: • Create an argument that use of the ...

Transfer pricing is the pricing of assets funds services

Transfer pricing is the pricing of assets, funds, services, etc., transferred among related organizations. Using online library resources, and the Internet, conduct research to discuss the transfer pricing regulations an ...

Accounting questionin germany and china separate

Accounting Question: In Germany and China separate institutions established by law carry out the roles of public accounting and auditing. What is the impact of this professional practice on the usefulness of internationa ...

Question 1bringing account balances up to date before

Question 1 Bringing account balances up to date before preparing financial reports is called A. posting. B. adjusting. C. journalizing. D. analyzing. Question 2 The entry to record the expiration of part of the prepaid r ...

International accounting1 when discussing foreign currency

International Accounting 1. When discussing foreign currency exchange, there are several arrangements. List two of these. 2. A _________ is a contract between two or more parties. 3. What are the timelines for the new re ...

Accounting information systemsfor this assignment research

Accounting Information Systems For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's accounting information syste ...

1 which of the following statements about equity is

1. Which of the following statements about equity is correct? A. If equity is negative, debt exceeds total assets B. If equity is negative, total assets exceed debt C. If equity is negative, equity exceeds assets D. If e ...

  • 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