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please solve all!! Suppose you purchase old farm land to develop baseball fields. Cost of Land 225,000 Back Taxes 12,000 Attorney fees 1,800 Demolition of
please solve all!!
Suppose you purchase old farm land to develop baseball fields. Cost of Land 225,000 Back Taxes 12,000 Attorney fees 1,800 Demolition of old barn 18,000 Sale of salvaged farm equip. (3,000) City assessment 9,000 Total cost of land is: $225,000 $265,800 $247,800 $262,800 When constructing a new building, tax and insurance are capitalized. True False Suppose the company purchases the following asset: Cost = $12,000 ($11,000 + $1,000 for shipping and install) Residual value = $2,000 (estimated selling price in 5 years). Expected useful life = 5 years What is the amount of depreciation expense in year 4 if the company uses a 200% declining balance depreciation method? $592 $0 $2,000 $1,036.80 Question 4 1 pt Suppose the company purchases the following asset: Cost = $12,000 ($11,000+ $1,000 for shipping and install) Residual value = $2,000 (estimated selling price in 5 years). Expected useful life = 5 years What is the book value at the end of year three if the company uses a 200% declining balance depreciation method? $1,728 $9,408 $12,000 $2,592 Kansas Enterprises purchased equipment for $81,500 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $8,550 at the end of five years. Using the double-declining balance method, the book value at December 31, 2019 would be (Do not round your intermediate calculations): $29,340 $16,300 $37,820 $35,420 Suppose on 1/1/2012 the company purchases equipment that costs $12,000, has an expected useful life of 5 years, and has a residual value of $2,000 (straight-line method). What will be the gain or loss on the sale of the equipment if it was sold on 12/31/2015 for $3,000: $4.000 loss $4,000 gain $1,000 gain $1,000 loss To see if an asset is impaired, a company first looks at the book value compared to its the estimated cash flow. If the book value is less than the estimated cash flow, the book value is reduced to the fair value. True False A company is trying to figure out if an asset is impaired. It provides the following information: Book Estimated Fair Book Value Estimated Cash Flows Fair Value Machine 16,000 10,000 9,000 Is the asset impaired? If so, what will be the value of the asset after recording the impairment? Yes, $7,000 No Yes, $9,000 Yes, $16,000 Yes, $10,000 To see if an asset is impaired, a company first looks at the book value compared to its fair value. If the book value is less than its fair value, the book value is reduced to the estimated cash flows. True False Step by Step Solution
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