Hello,

This is a practice quiz I found on here. I would like step by step on how to solve the problem shown on a word document. Also, a few sentences explaining why you did the mathematical/accounting steps for EACH problem. I would like to get a full sense of HOW and WHY each question was solved the way it was. Also, I made this question worth a lot and I expect outstanding work. Thank you in advance, and look forward to working with you

Quiz 6 Question 1 Answer saved Points out of 2.00 Flag question 0 qaid=5449709&qu 0 Question text 2 A fixed asset with a 10-year life and no salvage value is purchased. Estimated output is 10,000 units. Actual units produced in its first year is 1,500 units. Which depreciation method will result in the largest depreciation expense in the first year? Select one: a. Straight-line b. Double-declining balance c. Units of production d. Sum-of-the-years digits Question 2 Answer saved Points out of 2.00 Flag question 0 qaid=5449710&qu 0 Question text 2 On January 1, 2010, Bart Company purchased equipment at a cost of $135,000. The equipment was estimated to have a useful life of 5 years and a salvage value of $15,000. Bart uses the sum-of-the- Quiz 6 years'-digits method of depreciation. What should the accumulated depreciation be on December 31, 2012? Select one: a. $108,000 b. $84,000 c. $72,000 d. $54,000 e. $96,000 Question 3 Answer saved Points out of 2.00 Flag question 0 qaid=5449711&qu 0 Question text 2 Wheeler Corporation constructed a building at a cost of $20,000,000. The weighted-average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $1,500,000. If the salvage value is $2,400,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is: Select one: a. $477,500 b. $440,000 c. $500,000 d. $470,000 e. $640,000 Quiz 6 Question 4 Answer saved Points out of 2.00 Flag question 0 qaid=5449712&qu 0 Question text 2 Beth hires Howsen in 1/1/11 to construct a building. Payments to Howsen during 2011: The building is ready for use on 12/31/11. Actual debt for Beth consists of: Bonds payable, 12%, $4,000, issued 1/1/11 to help finance building construction. Bonds payable, 10%, $12,000 issued 7/1/09 for general purposes. The capitalized interest will be: Select one: a. $1,247 b. $1,280 c. $1,313 d. $1,680 e. $1,080 Question 5 Answer saved Points out of 2.00 Quiz 6 Flag question 0 qaid=5449713&qu 0 Question text 2 Two independent companies, ABC Co. and XYZ Co., exchange buildings. The transaction lacks commercial substance. An appraiser was hired, and from his report and the companies' records, the following information was obtained. The exchange was made, and based on the difference in appraised value, XYZ Co. paid $15,000 to ABC Co. For financial reporting purposes, XYZ Co. should recognize a pre-tax gain on this exchange of: Select one: a. $- 0 b. $3,000 c. $15,000 d. $20,000 e. $35,000 Question 6 Answer saved Points out of 2.00 Flag question 0 qaid=5449714&qu 0 Quiz 6 Question text 2 THE DATA FOR THIS QUESTION ARE THE SAME AS THE PREVIOUS QUESTION. Two independent companies, ABC Co. and XYZ Co., exchange buildings. The transaction lacks commercial substance. An appraiser was hired, and from his report and the companies' records, the following information was obtained. The exchange was made, and based on the difference in appraised value, XYZ Co. paid $15,000 to ABC Co. The new building should be recorded on ABC's books at: Select one: a. $85,000 b. $95,000 c. $68,000 d. $100,000 e. $80,000 Question 7 Answer saved Points out of 2.00 Flag question 0 Question text 2 qaid=5449715&qu 0 Quiz 6 Rye Co. purchased a machine with a four-year estimated useful life and an estimated 10% salvage value for $80,000 on January 1, 2002. In its income statement, what would Rye report as the depreciation expense for 2004 using the double-declining-balance method? Select one: a. $9,000 b. $10,000 c. $18,000 d. $20,000 e. $40,000 Question 8 Answer saved Points out of 2.00 Flag question 0 qaid=5449716&qu 0 Question text 2 Garrison Corporation purchased a depreciable asset for $420,000 on January 1, 2005. The estimated salvage value is $42,000, and the estimated total useful life is 9 years. The straight-line method is used for depreciation. On January 1, 2008, Garrison changed its estimates to a useful life of 5 years from the current date with a salvage value of $70,000. What is the 2008 depreciation expense? Select one: a. $44,800 b. $42,000 c. $112,000 d. $126,000 e. $132,000 Quiz 6 Question 9 Answer saved Points out of 2.00 Flag question 0 qaid=5449717&qu 0 Question text 2 On December 1, 2003, Boyd Co. purchased a $400,000 tract of land for a factory site. Boyd razed an old building on the property and sold the materials it salvaged from the demolition. Boyd incurred additional costs and realized salvage proceeds during December 2003 as follows: On its December 31, 2003, balance sheet, Boyd should report a balance in the land account of: Select one: a. $470,000 b. $460,000 c. $440,000 d. $420,000 e. $450,000 Question 10 Answer saved Points out of 2.00 Flag question 0 qaid=5449718&qu 0 Quiz 6 Question text 2 Hagen Co. exchanged a truck with a carrying amount of $10,000 and a fair value of $17,000 for a truck and $5,000 cash. The fair value of the truck received was $12,000. The exchange was considered to have commercial substance. At what amount should Hagen record the truck received in the exchange? Select one: a. $7,000 b. $9,000 c. $12,000 d. $15,000 e. $20,000 Question 3 Incorrect 0.00 points out of 2.00 Flag question 0 qaid=5449711&qu 0 Question text 3 Wheeler Corporation constructed a building at a cost of $20,000,000. The weighted-average accumulated expenditures were $8,000,000, actual interest was $1,200,000, and avoidable interest was $1,500,000. If the salvage value is $2,400,000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is: Select one: a. $477,500 b. $440,000 c. $500,000 Quiz 6 d. $470,000 e. $640,000 Feedback The correct answer is: $470,000 Question 5 Incorrect 0.00 points out of 2.00 Flag question 0 qaid=5449713&qu 0 Question text 3 Two independent companies, ABC Co. and XYZ Co., exchange buildings. The transaction lacks commercial substance. An appraiser was hired, and from his report and the companies' records, the following information was obtained. The exchange was made, and based on the difference in appraised value, XYZ Co. paid $15,000 to ABC Co. For financial reporting purposes, XYZ Co. should recognize a pre-tax gain on this exchange of: Select one: a. $- 0 b. $3,000 c. $15,000 d. $20,000 Quiz 6 e. $35,000 Feedback The correct answer is: $- 0