2071partqz2-21sol

2071partqz2-21sol - Version B 1 On which financial...

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ACG 2071 Second Chance Participation Quiz Solution Version A 1. Max, Inc. purchased a 10-year franchise from Applebee’s for $150,000 on September 30, 2010. How much is amortization on the income statement for 2010? Circle your answer. ($150,000/10) * 3/12 = $3,750 2. Use the information question 1, how much is the book value of the franchise at the end of 2011? Circle your answer. 2010 expense + 2011 expense = accumulated depreciation $3,750 + $15,000 = $18,750 Book value = $150,000 - $18,750 = $131,250 3. On which financial statement, and in which specific section will you find capitalized amounts that provide future benefits over more than one accounting period? Balance sheet in the long-term assets (or property, plant, and equipment section ACG 2071 Second Chance Participation Quiz
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Unformatted text preview: Version B 1. On which financial statement, and in which specific section will you find capitalized amounts that provide future benefits over more than one accounting period? Balance sheet in the long-term assets (or property, plant, and equipment section 2. Evans Inc. purchased a 12-year franchise from Applebee’s for $162,000 on September 30, 2010. How much is amortization on the income statement for 2010? Circle your answer. ($162,000/12) * 3/12 = $3,375 3. Use the information question 1, how much is the book value of the franchise at the end of 2011? Circle your answer. 2010 expense + 2011 expense = accumulated depreciation $3,375 + $13,500 = $16,875 Book value = $162,000 - $16,875 = $145,125...
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