8.1 On July 1, 2019, Tulip Corp. purchased a new machine for $600,000. The new machine has an estimated useful life of ten years and the residual value was estimated to be $100,000. Depreciation was calculated using the double declining-balance method. To the nearest dollar, what amount should be shown in Tulip's balance sheet at December 31, 2020, for accumulated depreciation, for this machine? $ 8.2 Crocus Corp. acquired a tract of land in the interior containing an extractable natural resource. The company is required by the government to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 4.6 million tons, and that the land will have a value of $1.2 million after restoration. Relevant cost information follows: Land........ $5,700,000 Geological surveys... 392,000 Estimated restoration costs 2,100,000 If Crocus maintains no inventories, what is the depletion charge per ton of extracted resource? $ 8.3 Allium Corporation acquired all outstanding shares of BlueBell Ltd. For $4.2 million. Selected information relating to BlueBell was as follows: Fair value of identifiable net assets: $4.1 million Book value of identifiable net assets: $3.5 million How much goodwill should Allium recognize? 8.4 For both the years 2019 and 2020, Begonia Corporation reported pre-tax income of $300,000. You have been made aware that the company's 2019 ending inventory included inventory costing $18,000 that had been sold to a customer FOB shipping point and was in transit to the customer on December 31, 2019. 2020 ending inventory include inventory costing $9,000 that had been purchased from a supplier FOB destination and was in transit to Begonia on December 31, 2020 by $4,000. What is Begonia's corrected pre-tax income for 2019? $ ii. What is Begonia's corrected pre-tax income for 2020? $ 8.5 Iris Construction Corp. uses the percentage-of-completion method. In 2019, Iris began work on a contract for $1,650,000 which was completed in 2020. Data on the costs are: Year Ended December 31 2019 2020 Costs incurred...... $585,000 $420,000 Estimated costs to complete. 390,000 What amount should Iris recognize as gross profit in the calendar year 2020? 8.6 $ Daffodil Inc. reported the following information for 2020: Sales revenue $830,000 Cost of goods sold 290,000 Operating expenses 49,000 Loss on sale of operating equipment 5,000 Loss on operations of the discontinued FoxGlove division 10,000 Loss on the sale of FoxGlove's equipment 3,000 i. For 2020, how much would Daffodil report as income from operations? Ignore taxes. $
