Calculate the following and place the calculated number on the line provided. In all cases, assume that Berful Industries and all companies in question are US corporations employing US GAAP.

Berful bought a machine for $40,000 on the first day of the year. It is expected to have a useful life of 6 years or 72,000 units of production, and a salvage value of $4,000. Calculate depreciation expense for year 2 of its life using the methods described below.

Straight-line method ____________

Double-declining balance method ____________

Units of production method, with

12,000 units produced this year ____________

What is the correct balance of cash in Berfuls bank account, given the following information:

Balance per Bank $4,860.00

Balance per Books 2,479.48

Deposits in Transit 654.24

Outstanding Checks 3,028.89

Interest earned but unrecorded

on books 8.64

Bank service charge, also

unrecorded on books 2.77

Correct cash balance in bank $_____________

Berful has one item in beginning inventory that costs $50,000, and purchases two more during the year, one for $65,000 and later, one for $70,000. If two of the items are sold this year, what is the cost of ending inventory using each of these accounting methods:

FIFO $__________

LIFO $__________

Weighted Average $__________

If Berful purchases a machine for $6,000 this year, paying $400 to transport the machine to its manufacturing plant, $200 to insure it in transit to the manufacturing plant, and $600 to have it installed and made ready to use, what is the cost of the machine recorded in the long-term asset account?

Same facts as in d. above: What are the total expenses recognized this year from the purchase transaction? $_______________

Berful is going to undertake a large research and development project this year in an attempt to introduce a new product. How much of $50,000 in R & D costs incurred may Berful treat as an asset this year? $_______________

Berful plans to declare and pay $7,000 in dividends this year. What is the amount of dividends that it must recognize and report as an expense on its income statement this year? $_______________

Berful plans on acquiring another company this year, and expects to recognize about $40,000 in goodwill as a result of the transaction. How much goodwill would be required to be treated as an asset on the balance sheet of Berful Industries this year? $_______________

Berful plans to sell treasury stock at a $5,000 gain. How much of the gain will be reported as income on its income statement this year? $_______________

Berful plans to issue new shares of stock at a price $90,000 above its par value. How much gain can it report on its income statement as a result of the issuance of the new Berful Industries common stock? $_______________

Berful plans to hire a new officer for an annual salary of $100,000, and contracts are signed, but the new officer cannot join the firm until early next year. How much of the salary must be reported on the income statement as salary expense in this year? $_______________

Berful recognizes that its new warehouse costing $200,000 is built in a flood plane and could be destroyed if there was a flood. What liability should Berful recognize on its balance sheet this year as a result of this risk?

$_______________

Berfuls delivery truck has been involved in an accident, with an estimated loss due to damages of $3,000, all fully insured. What amount of loss should it recognize as a result of this accident? $_______________