Homework 8 - Emily Leungto mount the saw. The cash. The...

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Emily Leung Accounting 221 April 4 th , 2011 TA: L. Martin Homework: 8-2, 8-3, 8- 4, 8-6, 8-7, 8-9 8-2) Which of the following items should be classified as long- term operational assets? a. Cash c. Building e. Production machinery g. Accounts receivable i. Prepaid rent k. Franchise 8-3) Identify each of the following long-term operational assets as either tangible (T) or intangible (I). a. Retail store building b. Shelving for inventory c. Trademark d. Gas Well e. Drilling rig f. FCC license for TV station 8-4) Northeast Logging Co. purchased an electronic saw to cut various types and sizes of logs. The saw had list price of $120,000. The seller agreed to allow a 5 percent discount because Northeast paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,500. Northeast had to hire an individual to operate the saw. Northeast had to build a special platform to mount the saw. The cost of the platform was $1000. The saw operator was paid an annual salary of $40,000. The cost of the company’s theft insurance policy increased by $2,000 per year as a result of acquiring of the saw. The saw had a four-year
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This document was uploaded on 10/19/2011.

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Homework 8 - Emily Leungto mount the saw. The cash. The...

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