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

Discussion1st discussionexamine the customer and vendor

Discussion 1st Discussion: Examine the customer and vendor functions in QuickBooks. • Use one scenario or example to explain a feature or function that will help you make better management decisions in regard to customer ...

Questiona not-for-profit organization receives a restricted

Question: A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the ...

Case title the website launchyour company meddevice inc has

Case Title: The Website Launch Your Company, MedDevice, Inc., has just received FDA 510(k) clearance of its new, cutting edge medical device which paves the way for the official product launch in a few short months. Your ...

Valley care medical center expects projects x and y to

Valley Care Medical Center expects Projects X and Y to generate the following cash flows:   Givens (in '000s) Years                  0 1 2 3 4 5 1 Initial investment                              ($7,500)       2 Net oper ...

Question 1abc inc has estimated the following revenues and

Question 1 ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $5,081,953, total cash expenses $3,212,751, depreciation $623,167, taxes 33% ...

Using what youve learned from this phase compare accrual

Using what you've learned from this phase, compare accrual accounting to cash flow accounting. Discuss the strengths as weaknesses of each. Consider how each accounting system impacts a company's strategy formation and t ...

Intermediate management accounting1carpe diem co reported

Intermediate Management Accounting 1. Carpe Diem Co. reported the following variances for the period: Direct materials price variance $1,700 U Direct labour efficiency variance 23,600 U Fixed overhead volume variance 10, ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

Final paperwrite a five- to seven-page financial statement

Final Paper Write a five- to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial healt ...

Garner company began operations on january 1 2010 and uses

Garner Company began operations on January 1, 2010, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2013. The following information is available for th ...

  • 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