Bachman, Inc. plans to develop a shopping center. In the first quarter, the following amounts were spent:

Acquisition of land	$24,000
Surveys and legal fees	1,100
Land clearing	800
Fencing	3,000
Install lighting and signage	1,560

What amount should be recorded as the cost of the land in the corporation's books?

A.

$25,900

B.

$27,460

C.

$28,900

D.

If bonds with a face value of

$208,000

are issued at par, the amount of cash proceeds is ________.

A.

$207,892

B.

$224,640

C.

$241,280

D.

$208,000

Orbit Services, Inc. pays

$710,000

to acquire

32%

(200,000 shares) of the voting stock of State Investments, Inc. on January 5, 2019. State Investments, Inc. declares and pays a cash dividend of

$4.40

per share on June 14, 2019. Which of the following is the correct journal entry for the transaction on June 14, 2019?

A.

Cash	616,000
Equity InvestmentsState Investments, Inc.		616,000

B.

Cash	616,000
Dividend Revenue		616,000

C.

Equity InvestmentsState Investments, Inc.	616,000
Cash		616,000

D.

Cash	616,000
Retained Earnings		616,000

State Street Beverage Company issues

$805,000

of

12%,

10year

bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true?

A.

If the market rate of interest is

13%,

the bonds will issue at a discount.

B.

If the market rate of interest is

13%,

the bonds will issue at par.

C.

If the market rate of interest is

13%,

the bonds will issue above par.

D.

If the market rate of interest is

13%,

the bonds will issue at a premium.

Peter earns

$24.00

per hour for straight time

(40

hours), and the company pays him

timeandahalf

for overtime. He worked

45

hours at his job during the first week of March 2018. What was Peter's gross pay for the week?

A.

$1,140.00

B.

$1,084.50

C.

$1,080.00

D.

Masonry Construction Group paid

$7,000

for a plant asset that had a market value of

$7,500.

At which of the following amounts should the plant asset be recorded?

A.

$7,000

B.

$3,500

C.

$14,000

D.

The cost of an asset is

$1,070,000,

and its residual value is

$280,000.

Estimated useful life of the asset is

eight

years. Calculate depreciation for the first year using the

doubledecliningbalance

method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

A.

$267,500

B.

$98,750

C.

$133,750

D.

$197,500

Anderson Corporation has purchased a group of assets for

$17,300.

The assets and their relative market values are listed below.

Land	$6,600
Equipment	2,400
Building	3,100

Which of the following amounts would be debited to the Land account? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A.

$4,033

B.

$3,460

C.

$9,515

D.

$4,498