Question 1. 1. Corresponds to CLO 1(a) |
An outlay made to increase the efficiency of an existing plant asset. |
$110,000 |
4. On March 1, 2004, Tucker Corporation purchased a new machine for $355,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $19,000. The company has recorded monthly depreciation using the straight-line method. On July 1, 2013, the machine was sold for $45,000. What gain should be recognized from the sale of the machine? (Points : 7) |
$14,400 |
$14,500 |
Question 7. 7. Corresponds to CLO 2(c)
Volmer Corporation owns machinery with a book value of $425,000. It is estimated that the machinery will generate future cash flows of $325,000. The machinery has a fair value of $300,000. Volmer should recognize a loss on impairment of (Points : 7)
$125,000
$100,000
$25,000
$ -0-
$5.75 |
$2,000 |
$ -0- |
$1,800 |
12.
$ -0- |
$500,000 $500,000 |
When the occurance of future events is probable and the amount can be reasonably estimated. |
$5,301,360 |
$40,000 |
Companies should capitalize leases that are similar to installment purchases. |
Depreciation expense of $184,002 and interest expense of $150,000. |
|
Question 19. 19. Corresponds to CLO 5(c) |
$1,440,000
$1,159,502
$1,066,742
$999,502
Capital lease |
|
Common Stock for $100,000 |
Treasury Stock for $360,000and Paid-in Capital from Treasury Stock for $30,000 |
Question 24. 24. Corresponds to CLO 6(d) |
Convertible
Noncumulative
Redeemable
Callable
$420,000 |
$320,000 |
No effect $800,000 Decrease |
Common stock, 1,000 shares at $400 par |