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Question 1 (10 points) Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $15,000 Building 30,000 Equipment 40,000 Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.) Your Answer: Answer Question 2 (10 points) Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $20,000 for the truck. The truck is expected to have a $2,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double- declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount? Your Answer: Answer Question 3 (10 points) Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $24,000 for the truck. The truck is expected to have a $3,000 residual value and a 7-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Your Answer:Question 4 (10 points) Somerset Company acquired a piece of equipment with a list price of $200,000 for $160,000. Freight to Somerset's location was $4,000. Installation and testing costs were $10,500. An old piece of equipment was scrapped as a result of this new purchase. The old piece of equipment had an undepreciated value (net book value) of $8,000. The new piece of equipment is expected to have a 10 year life and a salvage value of $15,000. What is the total value assigned to the new piece of equipment? Your Answer: Answer Question 5 (10 points) February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $102,000. The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were: Item Amount Demolition dilapidated building $3,400 Architect Fees $11,250 Legal Fees - for title search $1,250 Interest During Active Construction Period $5,025 Real estate transfer tax $750 Construction Costs $605,000 Using this information, how much should be recorded as the cost of the land? Your Answer: AnswerQuestion 6 (10 points) On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated residual value of $4,000. Frostburg has recorded depreciation of the equipment using the straight-line method. On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000. The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2019. Date Accounts Debit Credit Question 7 (10 points) Bowie Company uses a calendar year and the straight line depreciation method. On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine which was originally purchased on January 1, 2015. The historical cost was $21,500, the salvage value assumed was $1,000 and the original estimated life was five years.. It was sold for $3,600 cash. Using this information, how much should be recorded on December 31 for the Gain or (Loss)? Round to whole dollars. Your Answer:Question 8 (10 points) Frederick Mining Company owns a large parcel of land which costs $950,000. It is estimated to contain 1,500,000 tons of recoverable ore. It is estimated that the recovery of the ore will take 10 years and that after the ore is fully depleted the land will be sold for a market value of $100,000. In 2018, Frederick extracted and sold 105,000 tons of ore. What is the amount of depletion that should be recorded? Round total the nearest whole dollar. Your Answer: Answer Question 9 (10 points) On January 2, 2019, Adelphi Company purchased a patent for $195,000 plus $10,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 9 years after which time it will be worthless. How much is the annual amortization expense for 2019? Round to nearest whole dollar. Your Answer: AnswerQuestion 10 (10 points) Annapolis Company was recently sold for $500,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of: Item Amount Accounts Receivable assumed by buyer $90,000 Inventory $290,000 Property, Plant & Equipment (net) $505,000 Notes Payable assumed by buyer $665,000 Using this information, how much should be recorded as Goodwill for this transaction? Your