1 Bloomington Inc exchanged land for equipment and $2,900 in cash The book value and the fair value of the land were $104,900 and $89,200, respectively Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain (loss) of Equipment Gain (loss) a $ 86,300 $ 2,900 b $ 104,900 $ (2,900 ) c $ 86,300 $ (15,700 ) d None of these answer choices are correct Multiple Choice Option A Option B Option C Option D 2 Grab Manufacturing Co purchased a 10 ton draw press at a cost of $181,000 with terms of 4 15, n 45 Payment was made within the discount period Shipping costs were $4,400, which included $380 for insurance in transit Installation costs totaled $12,500, which included $5,200 for taking out a section of a wall and rebuilding it because the press was too large for the doorway The capitalized cost of the 10 ton draw press is Multiple Choice $190,660 $195,660 $194,160 $188,660 3 The balance sheets of Davidson Corporation reported net fixed assets of $344,000 at the end of 2018 The fixed asset turnover ratio for 2018 was 4 0, and sales for the year totaled $1,492,000 Net fixed assets at the end of 2017 were Multiple Choice $431,000 $373,000 $402,000 None of these answer choices are correct 4 Liddy Corp began constructing a new warehouse for its operations during the current year In the year Liddy incurred interest of $20,000 on a working capital loan, and interest on a construction loan for the warehouse of $80,000 Interest computed on the average accumulated expenditures for the warehouse construction was $50,000 What amount of interest should Liddy expense for the year Multiple Choice $150,000 $50,000 $100,000 $20,000 Pleasssssse answer all questions thank you )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 04, 2024

1/ Bloomington Inc. exchanged land for equipment and $2,900 in cash. The book value and the fair value of the land were $104,900 and $89,200,

1/ Bloomington Inc. exchanged land for equipment and $2,900 in cash. The book value and the fair value of the land were $104,900 and $89,200, respectively.

Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss) of:

	Equipment		Gain/(loss)
a.	$	86,300	$	2,900
b.	$	104,900	$	(2,900	)
c.	$	86,300	$	(15,700	)
d.	None of these answer choices are correct.

Multiple Choice

Option A
Option B
Option C
Option D

2/ Grab Manufacturing Co. purchased a 10-ton draw press at a cost of $181,000 with terms of 4/15, n/45. Payment was made within the discount period. Shipping costs were $4,400, which included $380 for insurance in transit. Installation costs totaled $12,500, which included $5,200 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the 10-ton draw press is:

Multiple Choice

$190,660.
$195,660.
$194,160.
$188,660.

3/ The balance sheets of Davidson Corporation reported net fixed assets of $344,000 at the end of 2018. The fixed-asset turnover ratio for 2018 was 4.0, and sales for the year totaled $1,492,000. Net fixed assets at the end of 2017 were:

Multiple Choice

$431,000.
$373,000.
$402,000.
None of these answer choices are correct.

4/ Liddy Corp. began constructing a new warehouse for its operations during the current year. In the year Liddy incurred interest of $20,000 on a working capital loan, and interest on a construction loan for the warehouse of $80,000. Interest computed on the average accumulated expenditures for the warehouse construction was $50,000. What amount of interest should Liddy expense for the year?

Multiple Choice