1--Burnett Construction Group (BCG) paid $5 000 for a plant asset that had a market value of $16500. At what amount should BCG record this plant asset in accordance with GAAP/FASB? 2--On January 1, 2023. Chichester Manufacturing Corporation (CMC) purchased a machine for $40 700 000. Chichester's management expects to use the machine for 27 000 hours over the next six years. Chichester's management estimates the residual or salvage value of the machine at $47 000. The machine was utilized for 3 900 hours in 2023 and 5 300 hours in 2024. In accordance with GAAP, CMC has appropriately adopted the units-of-production depreciation method. In accordance with GAAP, what amount of depreciation expense should CMC report for the years ended 2023 and 2024? 3--Travis plans to develop a shopping center and has spent the following amounts: Acquisition of land $18 000 Surveys and legal fees Land clearing $500 Fencing $5 000 Installing lighting and signage $1 160 Based on these expenditures, what amount should Travis record in the corporation's Land account in accordance with GAAP? Where should any other amounts-amounts not recorded to the Land account --be recorded and reported? 4 --On January 1, 2023 Adita acquired a machine for $1 030 000. Acila estimates the useful lite of this asset at five years. Further, Adita estimates the residual value of this machine at $55 000 after five years of use. Adita appropriately applies the straight-line depreciation method to this machine. What amount of depreciation expense should Adila report its Income Statement for the year ended December 31, 2023? 5--Explain how a company-subject to SEC and FASB reporting requirements--decides which costs to include in the cost of a plant asset $700 1--Burnett Construction Group (BCG) paid $5 000 for a plant asset that had a market value of $16500. At what amount should BCG record this plant asset in accordance with GAAP/FASB? 2--On January 1, 2023. Chichester Manufacturing Corporation (CMC) purchased a machine for $40 700 000. Chichester's management expects to use the machine for 27 000 hours over the next six years. Chichester's management estimates the residual or salvage value of the machine at $47 000. The machine was utilized for 3 900 hours in 2023 and 5 300 hours in 2024. In accordance with GAAP, CMC has appropriately adopted the units-of-production depreciation method. In accordance with GAAP, what amount of depreciation expense should CMC report for the years ended 2023 and 2024? 3--Travis plans to develop a shopping center and has spent the following amounts: Acquisition of land $18 000 Surveys and legal fees Land clearing $500 Fencing $5 000 Installing lighting and signage $1 160 Based on these expenditures, what amount should Travis record in the corporation's Land account in accordance with GAAP? Where should any other amounts-amounts not recorded to the Land account --be recorded and reported? 4 --On January 1, 2023 Adita acquired a machine for $1 030 000. Acila estimates the useful lite of this asset at five years. Further, Adita estimates the residual value of this machine at $55 000 after five years of use. Adita appropriately applies the straight-line depreciation method to this machine. What amount of depreciation expense should Adila report its Income Statement for the year ended December 31, 2023? 5--Explain how a company-subject to SEC and FASB reporting requirements--decides which costs to include in the cost of a plant asset $700
