final answers - Question 1 6 out of 6 points Which one of...

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Question 1 6 out of 6 points Which one of the following types of assets should not be classified as property, plant, and equipment? Selected Answer: idle land and buildings Correct Answer: idle land and buildings Question 2 6 out of 6 points The president of Reindeer Corporation donated a building to Monday Corporation. The building had an original cost of $500,000, a book value of $175,000, and a fair market value of $250,000. To record this donation, Monday will Selected Answer: debit Building for $250,000 and credit Gain for $250,000 Correct Answer: debit Building for $250,000 and credit Gain for $250,000 Question 3 6 out of 6 points On August 28, 2010, Ruggle Drilling Services purchased a machine with a contract price of $400,000 and cash terms of 2/10, n/30. The company paid $8,000 in transportation costs and $8,000 for installation. Sales taxes of $22,000 were paid on the invoice amount. The machine should be recorded as a plant asset in the amount of Selected Answer: $ 430,000 Correct Answer: $ 430,000 Question 4 6 out of 6 points The Jacob Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum price of $500,000. At the time of acquisition, Jacob paid $20,000 to have the assets appraised. The appraisal disclosed the following values: Land $100,000 Buildings 200,000 Equipment 300,000 What costs should be assigned to the buildings? Selected Answer: $173,3 33
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Correct Answer: $173,3 33 Question 5 0 out of 6 points On January 1, 2010, Ringo purchased, for $100,000, equipment having a useful life of eight years and an estimated salvage value of $4,000. Ringo has recorded monthly depreciation on the equipment using the straight-line method. On March 1, 2015, the equipment was sold for $46,000. As a result of this sale, Ringo should recognize Selected Answer: a $12,000 gain Correct Answer: an $8,000 gain Question 6 0 out of 6 points Rodriguez Company made the following payments related to a land acquisition: Purchase price $6,000 Past due taxes 500 Title search 150 Cost of razing old building 300 Proceeds from salvage of old building 85 The recorded cost of the land should be Selected Answer: $6,450 Correct Answer: $6,865 Question 7 6 out of 6 points Worth Manufacturing Company purchased a new production machine on July 1, 2010, for $140,000. The estimated salvage value is $10,000. The company uses units-of-production depreciation and estimates the machine will produce 100,000 units during its useful life. In 2010, the company manufactured 5,000 units after acquiring the machine. Depreciation expense for 2010 will
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be Selected Answer: $ 6,500 Correct Answer: $ 6,500 Question 8 6 out of 6 points Exhibit 1 On January 1, 2010, Hills purchased equipment for $200,000. The equipment had an estimated useful life of ten years and an estimated residual value of $40,000. Use the double-declining-balance method to answer the following question(s). Refer to Exhibit 1. How much depreciation should Hills record on the asset in 2010?
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