6 When plant assets are purchased as a group in a single transaction for a lump sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values true or false 7 The indirect method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities true or false 13 A corporation issued 8 bonds with a par value of $1,070,000, receiving a $34,000 premium On the interest date 5 years later, after the bond interest was paid and after 40 of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it The gain or loss on this retirement is $0 $10,700 gain $10,700 loss $31,100 gain $31,100 loss 16 A company's old machine that cost $51,000 and had accumulated depreciation of $39,900 was traded in on a new machine having an estimated 20 year life with an invoice price of $62,100 The company also paid $52,900 cash, along with its old machine to acquire the new machine If this transaction has commercial substance, the new machine should be recorded at $51,000 $60,200 $62,100 $64,000 $11,100 20 An employee earns $5,650 per month working for an employer The FICA tax rate for Social Security is 6 2 of the first $118,500 of earnings each calendar year and the FICA tax rate for Medicare is 1 45 of all earnings The current FUTA tax rate is 0 6 , and the SUTA tax rate is 5 4 Both unemployment taxes are applied to the first $7,000 of an employee's pay The employee has $188 in federal income taxes withheld The employee has voluntary deductions for health insurance of $156 and contributes $78 to a retirement plan each month What is the amount the employer should record as payroll taxes expense for the employee for the month of January (Round your intermediate calculations to two decimal places ) $384 20 $771 23 $959 23 $655 40 $350 30 23 A machine with a cost of $134,000 and accumulated depreciation of $89,000 is sold for $52,000 cash The amount that should be reported as a source of cash under cash flows from investing activities is Zero This is a financing activity $52,000 $7,000 Zero This is an operating activity $45,000 25 A short term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is shorter true or false

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6. When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among

6. When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values

true or false

7. The indirect method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

true or false

13. A corporation issued 8% bonds with a par value of $1,070,000, receiving a $34,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is:

$0.
$10,700 gain.
$10,700 loss.
$31,100 gain.
$31,100 loss.
16. A company's old machine that cost $51,000 and had accumulated depreciation of $39,900 was traded in on a new machine having an estimated 20-year life with an invoice price of $62,100. The company also paid $52,900 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at:
$51,000.
$60,200.
$62,100.
$64,000.
$11,100.
20.An employee earns $5,650 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 of earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $188 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $156 and contributes $78 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January? (Round your intermediate calculations to two decimal places.)
$384.20
$771.23
$959.23
$655.40
$350.30

23. A machine with a cost of $134,000 and accumulated depreciation of $89,000 is sold for $52,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
Zero. This is a financing activity.
$52,000.
$7,000.
Zero. This is an operating activity.
$45,000.

25. A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the operating cycle, whichever is shorter.
true or false