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problem II you are statements or in an Bere given several words, phrases, or numbers to choose from in completing each of the following Gents or in answering the following questions. In each case select the one that best completes the ment or answers the question and place its letter in the answer space provided. Jocelyn Leland, CPA, paid $165,000 to purchase approximately two acres of land and the building on it to be used as an office. The building was appraised at $84,000 and the land was appraised at $126,000. What amount should be debited to the Land account? D 2. a. $165,000 b. $211,000 165, ooo c. $126,000 d. $66,000 e. $99,000 Flintstone Company depreciated a machine that cost $21,600 on a straight-line basis for three years under the assumption it would have a five-year life and a $3,600 trade-in value. At that point, the manager realized that the machine had three years of remaining useful life, after which it would have an estimated $2,160 trade-in value. Determine the amount of depreciation to be charged against the machine during each of the remaining years in its life. a. $3,240 b. $1,800 c. $2,640 d. $2,880 e $3,888 Chapter 8 o to sc s. A machine that cost $40,000 and had been depreciated $30,000 was exchanged for a new machine in a transaction which had commercial substance. The new machine had as estimated 10-year life and market value of $50,000. If $33,000 cash was paid, at what amount should the new machine be recorded in the accounts? (Appendix 8A) pendix 8A) a. $10,000 b. $40,000 C. $50,000 d. $43,000 e. $33,000 The Romeo Company exchanged its used bottle-capping machine for a new bottle capping machine. The old machine cost $14,000, and the new one had a market value of $19,000. Romeo had taken $12,000 depreciation on the old machine and paid $18,500 cash for the new machine. If the transaction had commercial substance, what gain or loss should be recorded on the exchange? (Appendix 8A) a. No gain or loss b. $500 gain C.) $1,500 loss d. $1,500 gain e. $4,500 gain .. . dontuoued by fira The bulldozer Aricinally co problem II you are statements or in an Bere given several words, phrases, or numbers to choose from in completing each of the following Gents or in answering the following questions. In each case select the one that best completes the ment or answers the question and place its letter in the answer space provided. Jocelyn Leland, CPA, paid $165,000 to purchase approximately two acres of land and the building on it to be used as an office. The building was appraised at $84,000 and the land was appraised at $126,000. What amount should be debited to the Land account? D 2. a. $165,000 b. $211,000 165, ooo c. $126,000 d. $66,000 e. $99,000 Flintstone Company depreciated a machine that cost $21,600 on a straight-line basis for three years under the assumption it would have a five-year life and a $3,600 trade-in value. At that point, the manager realized that the machine had three years of remaining useful life, after which it would have an estimated $2,160 trade-in value. Determine the amount of depreciation to be charged against the machine during each of the remaining years in its life. a. $3,240 b. $1,800 c. $2,640 d. $2,880 e $3,888 Chapter 8 o to sc s. A machine that cost $40,000 and had been depreciated $30,000 was exchanged for a new machine in a transaction which had commercial substance. The new machine had as estimated 10-year life and market value of $50,000. If $33,000 cash was paid, at what amount should the new machine be recorded in the accounts? (Appendix 8A) pendix 8A) a. $10,000 b. $40,000 C. $50,000 d. $43,000 e. $33,000 The Romeo Company exchanged its used bottle-capping machine for a new bottle capping machine. The old machine cost $14,000, and the new one had a market value of $19,000. Romeo had taken $12,000 depreciation on the old machine and paid $18,500 cash for the new machine. If the transaction had commercial substance, what gain or loss should be recorded on the exchange? (Appendix 8A) a. No gain or loss b. $500 gain C.) $1,500 loss d. $1,500 gain e. $4,500 gain .. . dontuoued by fira The bulldozer Aricinally co
