I just need answers for these short problems. thank you.

Practice Exam: Intermediate II - Chapters 10, 11, and 12 MULTIPLE CHOICE 1. Plant assets may properly include a. deposits on machinery not yet received. b. idle equipment awaiting sale. c. land held for possible use as a future plant site. d. None of these answers are correct. 2. The cost of land does not include a. costs of grading, filling, draining, and clearing. b. costs of removing old buildings. c. costs of improvements with limited lives. d. special assessments. 3. Which of the following assets do not qualify for capitalization of interest costs incurred during construction of the assets? a. Assets under construction for an enterprise's own use. b. Assets intended for sale or lease that are produced as discrete projects. c. Assets financed through the issuance of long-term debt. d. Assets not currently undergoing the activities necessary to get them ready for use. 4. When computing the amount of interest cost to be capitalized, the concept of "avoidable interest" refers to a. the total interest cost actually incurred. b. a cost of capital charge for stockholders' equity. c. that portion of total interest cost which would not have been incurred if expenditures for asset construction had not been made. d. that portion of weighted-average accumulated expenditures on which no interest cost was incurred. 5. When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the a. par value of the stock. b. stated value of the stock. c. book value of the stock. d. fair value of the stock. 6. For a nonmonetary exchange of plant assets, accounting recognition should not be given to a. a loss when the exchange has no commercial substance. b. a gain when the exchange has commercial substance. c. part of a gain when the exchange has no commercial substance and cash is paid (cash paid/received is less than 25% of the fair value of the exchange). d. part of a gain when the exchange has no commercial substance and cash is received (cash paid or received is less than 25% of the fair value of the exchange). 7. Termination of an asset's service due to theft, fire, etc, is called: a. special assessment. b. nonreciprocal transfers. c. speculation. d. involuntary conversion. Use the following information for question 8. Wilson Co. purchased land as a factory site for $900,000. Wilson paid $80,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigation and making the purchase. Architect's fees were $31,200. Title insurance cost $2,400, and liability insurance during construction cost $2,600. Excavation cost $10,440. The contractor was paid $2,800,000. An assessment made by the city for pavement was $6,400. Interest costs during construction were $170,000. 8. The cost of the land that should be recorded by Wilson Co. is a. $980,480. b. $986,880. c. $989,880. d. $996,280. Use the following information for question 9. On March 1, 2014, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2014 $ 1,200,000 April 1, 2014 1,680,000 May 1, 2014 3,000,000 June 1, 2014 4,800,000 9. The weighted-average accumulated expenditures on the construction project during 2014 were a. $1,280,000. b. $9,780,000. c. $1,040,000. d. $2,320,000. Use the following information to answer question 10. Jamison Company purchased the assets of Booker Company at an auction for $4,200,000. An independent appraisal of the fair value of the assets is listed below: Land $1,425,000 Building 2,100,000 Equipment 1,575,000 Trucks 2,550,000 10. Assuming that specific identification costs are impracticable and that Jamison allocates the purchase price on the basis of the relative fair values, what amount would be allocated to the Trucks? a. $1,400,000 b. $2,100,000 c. $2,520,000 d. $2,550,000 11. Which of the following is true of depreciation accounting? a. It is not a matter of valuation. b. It is part of the matching of revenues and expenses. c. It retains funds by reducing income taxes and dividends. d. All of these answers are correct. 12. Economic factors that shorten the service life of an asset include a. obsolescence. b. supersession. c. inadequacy. d. all of these answers are correct. 13. Use of the double-declining balance method a. results in a decreasing charge to depreciation expense. b. means salvage value is not deducted in computing the depreciation base. c. means the book value should not be reduced below salvage value. d. all of these answers are correct. 14. Which of following is not a similarity in the accounting treatment for depreciation and cost depletion? a. The estimated life is based on economic or productive life. b. Assets subject to either are reported in the same classification on the balance sheet. c. The rates may be changed upon revision of the estimated productive life used in the original rate computations. d. Both depreciation and depletion are based on time. 15 Of the following costs related to the development of natural resources, which one is not a part of depletion cost? a. Acquisition cost of the natural resource deposit b. Exploration costs c. Tangible equipment costs associated with machinery used to extract the natural resource d. Intangible development costs such as drilling costs, tunnels, and shafts 16. The asset turnover ratio is computed by dividing a. net income by ending total assets. b. net income by average total assets. c. net sales by ending total assets. d. net sales by average total assets. 17. Falcon Company purchased a depreciable asset for $125,000. The estimated salvage value is $10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset? a. $11,500 b. $12,500 c. $115,000 d. $125,000 18. Jasmine Company purchased a depreciable asset for $225,000. The estimated salvage value is $15,000, and the estimated useful life is 8 years. The double-declining balance method will be used for depreciation. What is the depreciation expense for the second year on this asset? a. $26,250 b. $39,375 c. $42,188 d. $56,250 19. On January 3, 2013, Salazar Co. purchased machinery. The machinery has an estimated useful life of eight years and an estimated salvage value of $60,000. The depreciation applicable to this machinery was $130,000 for 2015, computed by the sum-of-the-years'digits method. The acquisition cost of the machinery was a. $720,000. b. $780,000. c. $840,000. d. $936,000. 20. Torque Co. has equipment with a carrying amount of $1,600,000. The expected future net cash flows from the equipment are $1,630,000, and its fair value is $1,360,000. The equipment is expected to be used in operations in the future. What amount (if any) should Torque report as an impairment to its equipment? a. No impairment should be reported. b. $240,000 c. $30,000 d. $270,000 21. Hart Corporation owns machinery with a book value of $285,000. It is estimated that the machinery will generate future cash flows of $300,000. The machinery has a fair value of $210,000. Hart should recognize a loss on impairment of a. $ -0-. b. $15,000. c. $75,000. d. $90,000. Use the following information for question 22: For 2014, Hammer Company reports beginning of the year total assets of $900,000, end of the year total assets of $1,100,000, net sales of $750,000, and net income of $150,000. 22. Hammer's 2014 asset turnover ratio is a. 0.14 times. b. 0.15 times. c. 0.68 times. d. 0.75 times. 23. Sifton Company reported the following data: Sales Net Income Assets at year end Liabilities at year end 2014 $3,000,000 300,000 1,800,000 1,100,000 2015 $3,900,000 400,000 2,500,000 1,500,000 What is Sifton's asset turnover for 2015? a. 1.56 b. 1.61 c. 1.81 d. 2.17 24. Which of the following does not describe intangible assets? a. They lack physical existence. b. They are financial instruments. c. They provide long-term benefits. d. They are classified as long-term assets. 25. Which of the following methods of amortization is normally used for intangible assets? a. Sum-of-the-years'-digits b. Straight-line c. Units of production d. Double-declining-balance 26. Which intangible assets are amortized? Limited-Life Indefinite-Life a. Yes Yes b. Yes No c. No Yes d. No No 27. Which of the following is not an intangible asset? a. Trade name b. Research and development costs c. Franchise d. Copyrights 28. The right granted to all authors, painters, musicians, sculptors, and other artists for their creations and expressions is termed as a a. copyright b. trademark c. patent d. franchise 29. Goodwill may be recorded when a. it is identified within a company. b. one company acquires another in a business combination. c. the fair value of a company's assets exceeds their cost. d. a company has exceptional customer relations. 30. A loss on impairment of an intangible asset is the difference between the asset's a. carrying amount and the expected future net cash flows. b. carrying amount and its fair value. c. fair value and the expected future net cash flows. d. book value and its fair value. 31. According to a Financial Accounting Standards Board Statement, how are research and development costs accounted for? a. They must be capitalized when incurred and then amortized over their estimated useful lives. b. They must be expensed in the period incurred. c. They may be either capitalized or expensed when incurred, depending upon the materiality of the amounts involved. d. They must be expensed in the period incurred unless it can be clearly demonstrated that the expenditure will have alternative future uses or unless contractually reimbursable. 32. The costs of organizing a corporation include legal fees, fees paid to the state of incorporation, fees paid to promoters, and the costs of meetings for organizing the promoters. These costs are said to benefit the corporation for the entity's entire life. These costs should be a. capitalized and never amortized. b. capitalized and amortized over 40 years. c. capitalized and amortized over 5 years. d. expensed as incurred. 33. Which of the following intangible assets should be shown as a separate item on the balance sheet? a. Goodwill b. Franchise c. Patent d. Trademark 34. Lynne Corporation acquired a patent on May 1, 2014. Lynne paid cash of $45,000 to the seller. Legal fees of $1,000 were paid related to the acquisition. What amount should be debited to the patent account? a. $1,000 b. $44,000 c. $45,000 d. $46,000 35. Day Company purchased a patent on January 1, 2014 for $480,000. The patent had a remaining useful life of 10 years at that date. In January of 2015, Day successfully defends the patent at a cost of $216,000, extending the patent's life to 12/31/26. What amount of amortization expense would Day record in 2015? a. $48,000 b. $54,000 c. $58,000 d. $72,000 36.. Floyd Company purchases Haeger Company for $1,600,000 cash on January 1, 2015. The book value of Haeger Company's net assets, as reflected on its December 31, 2014 balance sheet is $1,240,000. An analysis by Floyd on December 31, 2012 indicates that the fair value of Haeger's tangible assets exceeded the book value by $120,000, and the fair value of identifiable intangible assets exceeded book value by $90,000. How much goodwill should be recognized by Floyd Company when recording the purchase of Haeger Company? a. $ -0b. $360,000 c. $240,000 d. $150,000