Quiz 3 - Autograde Summary These are the automatically...

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Autograde Summary These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. Question Type: # Questions: # Correct: Multiple choice 20 11 Grade Details 1. Question:A company acquired some land for $80,000 to construct a new office complex. Legal fees paid were $2,300, delinquent taxes assumed were $3,400 and $5,850 was paid to remove an old building from which salvaged materials sold for $950. What is the cost basis for the land? Your Answer: $90, 600 C ORR ECT ANS WE R $91, 550 IN CO RR ECT $88, 150 Date Taken: 3/6/2010 5:06:33 PM Time Spent: 0:55:28 (1:30 allowed) Points Received: 55 / 100 (55%)
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$87, 200 Points Received: 0 of 5 Comments: 2. Question:Which of the following would NOT qualify as a capital expenditure? Your Answer: Over haul ed an engi ne Insta lled new carp et Repl aced tires on com pan y truc ks C ORR ECT
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Repl aced the ware hous e roof Points Received: 5 of 5 Comments: 3. Question:Which of the following is NOT characteristic of the accumulated depreciation account? Your Answer: Acc umu late d depr eciat ion repr esen ts cash rese rved for asset repl ace men t C ORR ECT Acc umul ated depr eciat
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ion is a contr a asset acco unt. Acc umul ated depr eciat ion may be discl osed in the note s to the finan cial state ment s. All of the abov e are char acter istic of the accu mula ted depr
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eciat ion acco unt. Points Received: 5 of 5 Comments: 4. Question:On September 1, a machine with a useful life of 8 years and a residual value of $5,000 was purchased for $47,000. What is depreciation expense in the year of purchase under straight-line depreciation assuming a December 31 year end? Your Answer: $5,2 50 IN CO RR ECT $5,8 75 $1,7 50 C ORR ECT ANS WE R $1,9 58
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Instructor Explanation: Since this machine was purchased September 1, the depreciation calculation must be pro- rated (4/12). Yes, the annual depreciation is $5,250 but the correct amount should be only $1,750 (4/12 times 5,250). Points Received: 0 of 5 Comments: 5. Question:On April 1, a machine with a useful life of 4 years and a residual value of $12,000 was purchased for $87,000. What is depreciation expense in the year of purchase under double declining balance depreciation assuming a December 31 year end? Your Answer: $32, 625 C ORR ECT ANS WE R $28, 125 $43, 500 $37, 500 IN CO RR ECT Instructor Explanation:When doing the double declining balance depreciation calculation, one initially ignores salvage value (but can not depreciate below salvage value). Using the facts of this question, the
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Quiz 3 - Autograde Summary These are the automatically...

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