Question 20:

On December 1, 20X1, Daniel Co. purchased a tract of land as a factory site for $750,000. The old building on the property was razed, and salvaged materials resulting from demolition were sold. Additional costs incurred and salvage proceeds realized during December 20X1 were as follows: In Daniel 's December 31, 20X1 balance sheet, what amount should be reported as land?

Question 20 options:

	$776,000.
	$846,000.
	$838,000.
	$812,000.

Question 21

Sloan Company buys an oil rig for $3,000,000 on January 1, 20X1. The life of the rig is 10 years and the expected cost to dismantle the rig at the end of 10 years is $600,000 (present value at 10% is $231,330). 10% is an appropriate interest rate for this company. What expense should be recorded for 20X1 as a result of these events?

Question 21 options:

	Depreciation expense of $300,000 and interest expense of $23,133
	Depreciation expense of $323,133 and interest expense of $23,133
	Depreciation expense of $360,000
	Depreciation expense of $300,000 and interest expense of $60,000

Question 22

Ester Corporation had the following transactions occur in the current year:

1. Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Ester common stock for cash. 4. Issuance of a note payable to a bank for cash. 5. Sale of a security held as an available-for-sale investment. 6. Collection of loan receivable.

How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year?

Question 22 options:

	Five items
	Three items
	Four items
	Two items

Question 23

Keyes Corporation had net income for 20X1 of $1,400,000. Additional information is as follows:

Depreciation of plant assets $1,000,000

Gain on sale of equipment 200,000

Increase in accounts receivable 300,000

Decrease in accounts payable 500,000 Lohan's net cash provided by operating activities for 2017 was

Question 23 options:

	$3,000,000.
	$1,400,000.
	$1,800,000.
	$2,400,000.

Question 24

Frey manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $225 per unit sold and reported a liability for estimated warranty costs $7.8 million at the beginning of this year. If during the current year, the company sold 60,000 units for a total of $243 million and paid warranty claims of $9,000,000 on current and prior year sales, what amount of liability would the company report on its balance sheet at the end of the current year? (assume accrual method)

Question 24 options:

	$12,300,000.
	$13,500,000.
	$4,500,000.
	$2,800,000.

Question 25

A company repays a $35,000 note payable. In preparing a statement of cash flows this event would be reflected as a(n)

Question 25 options:

	cash inflow from financing activities.
	cash inflow from investing activities.
	cash outflow from investing activities.
	cash outflow from financing activities.