4.

Horton Stores exchanged land and cash of $4,600 for similar land. The book value and the fair value of the land were $89,700 and $102,000, respectively.

Assuming that the exchangelackscommercial substance, Horton would record land-new and a gain/(loss) of:

Land

Gain/(loss)

$106,600

$12,300.

$94,300

$12,300.

$94,300

$0.

$106,600

$0.

5.

Bloomington Inc. exchanged land for equipment and $3,300 in cash. The book value and the fair value of the land were $104,900 and $88,600, respectively.

Bloomington would record equipment and a gain/(loss) of:

Equipment

Gain/(loss)

$85,300

$3,300.

$104,900

$(3,300).

$85,300

$(16,300).

All of these answer choices are incorrect.

6.

P. Chang & Co. exchanged land and $8,100 cash for equipment. The book value and the fair value of the land were $107,300 and $88,700, respectively.

Chang would record equipment and a gain/(loss) of:

Equipment

Gain/(loss)

$96,800

$(18,600).

$107,300

$(8,100).

$88,700

$(26,700).

$107,300

$(18,600).

10.

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016	$311,000
September 1, 2016	$453,000
December 31, 2016	$453,000
March 31, 2017	$453,000
September 30, 2017	$311,000

Dreamworld had $5,100,000 in 10% bonds outstanding through both years.

The average accumulated expenditures for 2017 by the end of the construction period was:

11.

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. Expenditures on the project were as follows:

January 1, 2016	$316,000
September 1, 2016	$462,000
December 31, 2016	$462,000
March 31, 2017	$462,000
September 30, 2017	$316,000

Dreamworld had $5,400,000 in 14% bonds outstanding through both years.

What was the final cost of Dreamworld's warehouse?

12.

Axcel Software began a new development project in 2015. The project reached technological feasibility on June 30, 2016, and was available for release to customers at the beginning of 2017. Development costs incurred prior to June 30, 2016, were $3,900,000 and costs incurred from June 30 to the product release date were $2,250,000. The 2017 revenues from the sale of the new software were $5,000,000, and the company anticipates additional revenues of $6,500,000. The economic life of the software is estimated at four years. 2017 amortization of the software development costs would be(Round interim calculations to two decimal places (e.g., .422525 as 42.25%)):

16.

On March 31, 2016, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $158,000, with estimated salable rock of 20,000 tons. During 2016, Belotti loaded and sold 5,600 tons of rock and estimated that 14,400 tons remained at December 31, 2016. At January 1, 2017, Belotti estimated that 16,800 tons still remained. During 2017, Belotti loaded and sold 11,200 tons. Belotti would record depletion in 2017 of(Round cost per ton to two decimal places.):

18.

In January of 2016, Vega Corporation purchased a patent at a cost of $207,000. Legal and filing fees of $51,000 were paid to acquire the patent. The company estimated a 10-year useful life for the patent and uses the straight-line amortization method for all intangible assets. In January 2019, Vega spent $26,000 in legal fees for an unsuccessful defense of the patent and the patent is no longer usable. The amount charged to income (expense and loss) in 2019 related to the patent should be:

19.

Fellingham Corporation purchased equipment on January 1, 2014, for $232,000. The company estimated the equipment would have a useful life of 10 years with a $17,600 residual value. Fellingham uses the straight-line depreciation method. Early in 2016, Fellingham reassessed the equipment's condition and determined that its total useful life would be only six years in total and that it would have no salvage value. How much would Fellingham report as depreciation on this equipment for 2016?

20.

Broadway Ltd. purchased equipment on January 1, 2014, for $660,000, estimating a 6-year useful life and no residual value. In 2014 and 2015, Broadway depreciated the asset using the straight-line method. In 2016, Broadway changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Broadway record for the year 2016 on this equipment?(Do not round your depreciation rate.)

21.

Jung Inc. owns a patent for which it paid $71 million. At the end of 2016, it had accumulated amortization on the patent of $13 million. Due to adverse economic conditions, Jung's management determined that it should assess whether an impairment loss should be recognized for the patent. The estimated undiscounted future cash flows to be provided by the patent total $42 million, and the patent's fair value at that point is $32 million. Under these circumstances, Jung:

rev: 03_11_2014_QC_46414

Would record no impairment loss on the patent.Would record a $39 million impairment loss on the patent.Would record a $26 million impairment loss on the patent.Would record a $10 million impairment loss on the patent.

23.

Robertson Inc. prepares its financial statements according to International Financial Reporting Standards. At the end of its 2016 fiscal year, the company chooses to revalue its equipment. The equipment cost $581,000, had accumulated depreciation of $255,000 at the end of the year after recording annual depreciation, and had a fair value of $345,000. After the revaluation, the accumulated depreciation account will have a balance of(Do not round intermediate calculations.):