11. Rockhead Stone & Quarry acquired a gravel extraction company for $200,000. The assets acquired and their appraised (i.e., market) values were: ABCDE A. A. B. C. D. E. B. In addition, the company paid $5,000 to get the bulldozer in working condition and $25,000 to replace the engine in the forklift. The amount that is recorded as the cost of the bulldozer in the company's balance sheet is equal to: C. D. E. A. B. C. D. E. ASSET Truck A. B. C. D. Bulldozer Forklift A. B. C. D. E. Total $44,800 $49,280 $51,520 The account type and normal balance for the account treasury stock would be: a contra equity account with a normal debit balance an equity account with a normal credit balance an asset account with a normal debit balance an equity account with a normal debit balance a contra equity account with a normal credit balance $49,800 $35,920 At the beginning of a lease, the lessee should record: APPRAISED VALUE $ 63,800 $ 49,280 $106,920 $220,000 Equipment is depreciated because a leased asset a lease liability both a leased asset and a lease liability neither a leased asset nor a lease liability the value of the equipment has decreased funds must be accumulated for the replacement of the equipment at the end of its useful life advances in technology cause equipment to become obsolete within several years of purchase the cost of the equipment must be matched with the revenue it produces over its useful life the company needs an approximate value of the asset when it is sold ABC Company has just purchased equipment that requires payments of $3,000 to be paid at the beginning of every three months for the next 5 years. If the interest rate is 12% compounded quarterly, the present value of the payments is closest to: $49,987 $45.970 $44,631 $42,401 $40,770

Rockhead Stone \& Quarry acquired a gavel extraction company for $200,000. The ascets acquired and their appraised (i.e., market) values were In addition, the company paid $5,000 to get the bulldozer in working condition and $25,000 to teplace the engine in the forklift. The amount that is recorded as the cost of the bulldozer in the company's balance sheet is equat to: A. $44,800 B. $49,280 C. $51,520 D. $49,800 E. $35,920 The account type and normal balance for the account treasury stock would be: A. a contra equity account with a normal debit balance B. an equity account with a normal credit balance C. an asset account with a normal debit balance D. an equity account with a normal debit balance B. a contra equity account with a normal credit balance At the beginning of a lease, the lessee should record: A. a leased asset B. a lease liability C. both n leased asset and a lease liability D. neither a leased asset nor a lease liability Equipment is depreciated because A. the value of the equipment has decreased B. funds must be accumulated for the replacement of the equipment at the end of its useful life C. advances in technology cause equipment to become obsolete within several years of purchase D. the cost of the equipment must be matched with the revenue it produces over its useful life E. the company needs an approximate value of the asset when it is sold ABC Company has just purchased equipment that requires payments of $3,000 to be paid at the beginning of every three months for the next 5 years. If the interest rate is 12% compounded quarterly, the present value of the payments is closest to: A. $49,987 B. $45,970 C. $44,631 D. $42,401 E. $40,770