Multiple Choice Question 66 Coronado Industries purchased equipment for $40300. Sales tax on the purchase was $2400. Other costs incurred were freight charges of s640, repairs of s300 for damage during installation, and installation costs of $675. What is the cost of the equipment? a. $44315 b. $42700 $40300 d. $44015 Answer: Multiple Choice Question 70 Crane Company constructed a building at a cost of $14150000. Weighted-average accumulated expenditures were $5580000, actual interest was $562000, and avoidable interest was s282000. If the salvage value is $1140000, and the useful life is 40 years, depreciation expense for the first full year using the straight-line method is a. $332300. b. $472150. $339300. d. $360800. Answer Multiple Choice Question 86 Marigold Corp. is constructing a building. Construction began on January 1 and was completed on March 1. finance construction of the building. In addition, the company had outstanding all year a 12550000 note payable. ss220000 en Jue 1, and S79SO000 on December 31. Marigold Corp. borrowed $3190000 on January 1 on a 5-year 10% note to help -year, What are the weighted-average accumulated expenditures? a. S835000 b. $19542000 c $9752000 d. $11592000 Answer: Multiple Choice Question 87 a building. Construction began on January 1 and was completed on December 31. Expenditures were year, 12% note to help finance construction of the payable and an 11%, 4-year, S12750000 note payable 6390000 on March 1, S5300000 on June 1. and $8250000 on December 31, waterway Induitries berrovved Sinoco on Januril on . S. building n addition the company had outstanding all year a 0%-reac s410000 note t is the weighted-average interest rate used for interest capitalization purposes? - Multiple Choice Question 88 Bramble Corp. is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6588000 on March 1, s 5160000 on June 1, and $8250000 on December 31. Bramble Corp. borrowed $3250000 on January 1 on a 5-year, 12% note to help finance construction of the bulding. In addition, the company had outstanding all year a 10%, 3 year, S6430000 note payable and an 11% 4 year, $12250000 note payable What is the avoidable interest for Bramble Corp. a $449112 b$1252550 C. $949650 d. $390000 Answer Multiple Choice Question 89 Industries is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures were $6370000 on March 1, $5300000 on June 1, and $8950000 on December 31. Coronade Industries borrowed $3180000 on January 1 on a 5- year, 12% note to help finance construction of the building. In addition, the company had outstanding all payable and an 11%, 4-year, $12350000 note payable. year a 10% 3 year, S6360000 note What is the actual interest for Coronado Industries? a. $1995500 b. $2408100 . $2376100 d. $938052 Answer Multiple Choice Question 90 Sheridan Company is constructing a building. Construction began on January 1 and was completed 56320000 on March 1, 55290000 on June 1, and $8350000 on December 31. Sheridanr si: Expenditures were Company borrowed $3170000 on January 1 on a 12% note to help finance construction of the building. In addition, the company had outstanding an andan11%, 4-year, $12750000 note payable. 3-year year a 10%-3-year, S6440000 note payable What amount of interest should be charged to expense? $2034500 b. $1196443 . $1113643 d. $1494045 Answer Multiple Choice Question 91 Vaughn Manufacturing traded in a manual pressing machine for an automated pressing machine and gave $39500 cash. The old machine cost $464000 and had a net book value of s329000. The old machine had a fair value of $295000. which of the following is the correct journal entry to record the exchange assuming commercial substance? a Equipment 334500 34000 135000 Loss on Disposal 464000 39500 Cash b. Equipment 334500 Equipment Cash 295000 39500 c. Equipment 638500 uipmentctn Cash 464000 39300 d. Cash 39500 295000 34000 135000 Loss on Disposal Equipment 503500 Answer Multiple Choice Question 115 Carla Vista Co. traded machinery with a book value of %545000 and fair value of S1005000. It received in echange from watery tndustel a machine with a fair value of $904500 and cash of $100500. Watervay's machine has a book value of $954750. What amount of gain should Carla Vista recognize on the exchange (assuming lack of commercial substance)? a. $460000 b. $46000 . $100500 Answers Multiple Choice Question 116 Coronado Industries traded machinery with a book value of $965140 and a fair value of s902000. It received in exchange from Wildhorse Co. a machine with a fair value of $1001220. Coronado also paid cash of $100122 in the exchange. Wildhorses machine has a book value of $965140. What amount of gain or loss should Coronado recognize on the exchange (assuming lack of commercial substance) a. $100122 gain b $63140 loss d. $6314 loss Answer Multiple Choice Question 65 Swifty Corporation purchased a truck at the beginning of 2017 for $108300. The truck is estimated to have a salvage value of $4100 and useful life of 130250 miles. It was driven 24000 miles in 2017 and 32000 miles in 2018. What is the depreciation expense for 20177 a. $2071 b $19200 C$25600 d. $44800 Answer Multiple Choice Question 68 Sheridan Company purchased a depreciable asset for $374000. The estimated salvage value is $26000, and the estimated useful life is 8 The double-declining balance method will be used for depreciation. What is the depreciation expense for the second y years. ear on this asset? $70125 b. $65437 . $43500 d. $93500 sweri Multiple Choice Question 76 On Jan and the salvage value was estimated to be $146000. Depreciation was computed should be shown in Coronado's balance sheet at December 31. 2018, net of accumulated depreciation, for this machine? nuary 1. 2017, Coronado Industries purchased a new machine for $4160000. The new machine has an estimated useful life of nine years using the sum-of-the years'-digits method. What amount $3357200 b. $2643600 $2586931 d $2462100 Answeri Multiple Choice Question 88 Bramble Corp purchased a depreciable asset for $61 50oo useful life is 5 years. The straight-line method is used for depreciation. What i the asset is sold? on Aprid 1. 2015. The estimated salvage value is $63000, and the estimated total s the balance in accumulated depreciation on May 1, 2018 when $340400 b $301400 $304400 d. $259400 Answer Multiple Choice Question 108 Marigold Corp, acquires a coal mine at a cost of $1420000. Intangible development costs total $360000. After extraction has occurred, Marigold must restore the property (estimated fair value of the obligation is $190000), after swhich it can be sold for $530000. Marigold estimates that 5760 tons of coal can be extracted. If 890 tons are extracted the first yeat swhich of the following would be included in the journal entry to record depletion? a. Credit to Inventory for $219830 b. Credit to Accumulated Depletion for $386285 c. Debit to Accumulated Depletion for $222500 d. Debit to Inventory for $222500 Answers Multiple Choice Question 112 For 2017. Marigold Corp. reports beginning of the year total assets of $904000, end of the year total assets of $1100000, net sales of $109000o and net income of $160320 The rate of return on assets for Marigold in 2017 is a. 16.0%. b. 14.6%. d. 12.0%. Answers Multiple Choice Question 113 Bramble Corp, reported the following data 917 2018 4439900 Sales Net Income Assets at year end Liabilities at year end $3050000 305000 1760000 1190000 394000 2570000 1530000 What is Bramble's asset turnover for 2018 1.80 b. 1.74 2.06 d. 2.53 Answer: . Practice Question 06 Chattanooga Company purchased a depreciable asset for $80.000 on January 1. 2015. The estmated salvage value is $20,000, a estimated useful life is 5 years. The straight-hne method is used for deprecutor. On January 1,2017, the of $16,000 for an addition to the asset. What is depreciation expense for 20177 (Assume that salvage valve remains unchanged)