Question trepd 0038 when preparing a draft of its

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Question: TREPD-0038
When preparing a draft of its 2008 balance sheet, Mont, Inc. reported net assets totaling $875,000. Included in the asset section of the balance sheet were the following:Treasury stock of Mont, Inc. at cost$24,000Idle machinery11,200Cash surrender value of life insurance on corporate executives13,700At what amount should Mont’s net assets be reported in the December 31, 2008 balance sheet?
Answer Explanations
This answer is incorrect. Refer to the correct answer explanation.This answer is incorrect. Refer to the correct answer explanation.This answer is incorrect. Refer to the correct answer explanation.Question: TREPD-0039Mirr, Inc. was incorporated on January 1, 2008, with proceeds from the issuance of $750,000 in stock and borrowed funds of $110,000. During the first year of operations, revenues from sales and consulting amounted to $82,000, and operating costs and expenses totaled $64,000. On December 15, Mirr declared a $3,000 cash dividend, payable to stockholders on January 15, 2009. No additional activities affected owners’ equity in 2008. Mirr’s liabilities increased to $120,000 by December 31, 2008. Mirr’s December 31, 2008 balance sheet, total assets should be reported atOn
Answer ExplanationsA.Answer A is correct. Mirr began operations on 1/1/08 with the following balance sheet elements:Assets=Liabilities+Owners' equity$860,000=$110,000+$750,000During 2008, liabilities increased to $120,000, and owners' equity increased to $765,000 [$750,000 beginning balance + $18,000 net income ($82,000 revenues – 64,000 expenses) - $3,000 dividends declared]. Therefore, 12/31/08 assets must be $885,000.Assets=Liabilities+Owners' equity$885,000=$120,000+$765,000B.Answer B is incorrect. Refer to the correct answer explanation.C.Answer C is incorrect. Refer to the correct answer explanation.D.Answer D is incorrect. Refer to the correct answer explanation.Question: TREPD-0040APB 22, Disclosure of Accounting Policies,

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