- 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