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cw490420_ShowFile_contentid_147084

cw490420_ShowFile_contentid_147084 - f 9 ‘7 Page 5...

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Unformatted text preview: f ' 9% ‘7 Page 5 Version 1 21. e cost of land would include all of the following except: (is fencing b. purchase price c. back property taxes d. clearing the land 22. A lump-sum acquisition of assets requires an allocation of the purchase price among the assets acquired. This allocation is called the: . cost method <§> relative—sales-value method ‘ c. allocation method d. book-value method 23. Land, buildings, and equipment are acquired for a lump sum of $900,000. The market values of the three assets are respectively, $200,000, $500,000, and $300,000. What is the cost assigned to the building? a. $500,000 , . b. $555,556 LAos Room” 1°?” ‘5 . c. $380,000 use, Samson SO’éX‘ibogoOb7- #313an {‘9 $45°'°°° epr We? 24. Capital leases are classi%g§d°én>financial statements as a. contra assets. ygk~expenses. ic,iassets. 3’. liabilities. 25. On January 2, 2001, Kuttler Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual-value is $20,000. If Kuttler Corporation uses the straight-line method of depreciation, what will be the debit to ' depreciation expense for the year ended December 31, 2002, during which period the asset was used 4,500 hours? a. $27 000 . ’ 0—7 I C @ $20,000 ”9.00 .b;<7..) 110,000 c.$24,000 SHns d. $22,500» 26. Based on the data in the previous question, what is the amount of depreciation expense for 2094, if Kuttler Corporation uses the asset 3,800 hours and uses the double—declining-balance method of depreciation? $25,920 .100! n.0,ooo x‘407o ‘5 “8000 b $5,920 4u5,¢o°> -C. $10 368 am~m~”““”"“ I 9' be d. $20,000 1002. yz‘ooa 2: ~10}, - 128 4223095 .1003 £13,200 “107; = ”.1?" —. 00,348“ 3W“: mu m am, (/4402: a20200:”) ...
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