84. Chico Company paid $950,000 for a basket purchase that included office furniture, a building and land. appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture - $190,000; Building - $740,000, Land - $132,000. Based on this information, and rounding allocations to two decimal places, the amount of cost that would be allocated to the office furniture is closest to: A. $190,000 B. $171,000. C. $316,667. D. $105,000 85. East Corporation's computation of cost of goods sold is: Beginning inventory $ 60,000 Add: Cost of goods purchased 482.000 Cost of goods available for sale 542,000 Ending inventory 70.000 Cost of goods sold $472.000 The average days to sell inventory for East are a. 44.0 days. b. 47.4 days. c. 50.0 days. d. 54.0 days. 27. During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Supplies in the amount of $32,800 were purchased. Actual year-end supplies amounted to $8,600. The adjusting entry for store supplies will 32,800 - 8600 = 24,200 a. increase net income by $24,200. b. increase expenses by $22,200. c. decrease supplies by $24.200. d. debit Accounts Payable for $22,200. 28. Starr Corporation loaned $500,000 to another corporation on December 1, 2017 and received a 3-month. 10% interest-bearing note with a face value of $500,000. What adjusting entry should Starr make on December 31, 2017? a. Debit Interest Receivable and credit Interest Revenue, $12,500. b. Debit Cash and credit Interest Revenue, $12,500. c. Debit Interest Receivable and credit Interest Revenue, $50,000. d. Debit Cash and credit Interest Receivable, $50,000. 500,000 103/12 = 12,50 29. Dune Company recorded journal entries for the declaration of $250.000 of dividends, the $160,000 increase in accounts receivable for services rendered, and the purchase of equipment for $105,000. What net effect do these entries have on stockholders' equity? 250,000 -160.000 90,000 a. Decrease of $355,000. b. Decrease of $195,000. C. Decrease of $90,000. d. Increase of $55,000 30. Which of the following is false about an income statement? a. Items that cannot be measured reliably are not reported in the income statement. (b. It is used to measure the solvency of a company. c. Income measurement involves judgment. d. Income numbers are affected by the accounting methods employed. 7 31. Which of the following is an example of accruals management used to improve current earnings? a. Decreasing estimated salvage value of equipment b. Writing off obsolete inventory. c. Underestimating warranty claims. d. Accruing a contingent liability for an ongoing lawsuit