Quiz_1 - Key - ACC 5110 QUIZ 1 Name: Part I. Choose best...

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Winter 2010 QUIZ 1 Name : KEY Part I. Choose best answer. 1. On December 1, 2009, Cotton Hotel Corporation purchased a $350,000 tract of land for a factory site. Cotton razed an old building on the property and sold the materials it salvaged from the demolition. Cotton incurred additional costs and realized salvage proceeds during December 2009 as follows: Demolition of old building $50,000 Legal fees for purchase contract and recording ownership 10,000 Title guarantee insurance 12,000 Proceeds from sale of salvaged materials 8,000 In its December 31, 2009 balance sheet, Cotton should report a balance in the land account of a. 400,000 b. 414,000 c. 422,000 d. 430,000 350,000+50,000+10,000+12,000-8,000 = 414,000 2.On January 18, 2010, Wayne Printing Co. incurred the following costs for one of its printing presses: Purchase of collating and stapling attachment $84,000 Installation of attachment 36,000 Replacement parts for overhaul of press 26,000 Labor and overhead in connection with overhaul 14,000 The overhaul resulted in a significant increase in production. Neither the attachment nor the
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Quiz_1 - Key - ACC 5110 QUIZ 1 Name: Part I. Choose best...

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