ACC 311 Quiz 8

ACC 311 Quiz 8 - Question 1 1 out of 1 points Gutierrez...

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Question 1 1 out of 1 points Gutierrez Company is constructing a building. Construction began in 2010 and the building was completed 12/31/10. Gutierrez made payments to the construction company of $1,500,000 on 7/1, $3,300,000 on 9/1, and $3,000,000 on 12/31. Average accumulated expenditures were Answer Selected Answer: $1,850,000. Correct Answer: $1,850,000. Question 2 0 out of 1 points Which of the following nonmonetary exchange transactions represents a culmination of the earning process? Answer Selected Answer: Exchange of an equivalent interest in similar productive assets that causes the companies involved to remain in essentially the same economic position. Correct Answer: Exchange of assets with a difference in future cash flows. Question 3 1 out of 1 points Which of the following intangible assets should not be amortized? Answer Selected Answer: Perpetual franchises Correct Answer: Perpetual franchises Question 4 0 out of 1 points
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exchanged 400 shares of Guinn Company common stock, which Siegle was holding as an investment, for equipment from Mayo Company. The Guinn Company common stock, which had been purchased by Siegle for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount on Mayo's books of $21,000. What journal entry should Siegle make to record this exchange? Answer Selected Answer: Equipment 21,000 Investment in Guinn Co. Common Stock 20,000 Gain on Disposal of Investment 1,000 Correct Answer: Equipment 23,200 Investment in Guinn Co. Common Stock 20,000 Gain on Disposal of Investment 3,200 Question 5 1 out of 1 points Lynne Corporation acquired a patent on May 1, 2010. Lynne paid cash of $30,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account? Answer
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ACC 311 Quiz 8 - Question 1 1 out of 1 points Gutierrez...

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