Question 1

For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions.You may use each letter more than once or not at all.
-Damaged during installation and repair costs

Accepted Answer

A)   Expensed immediately
B)   Capitalized as part of the cost of the new asset

Question 2

For each account listed in below, identify which reporting section (a through d)  each would appear on a company's financial statements.You may use each letter more than once or not at all.
-Patents

Accepted Answer

A)   Balance sheet-property, plant, and equipment
B)   Balance sheet-intangible assets
C)   Balance sheet-other
D)   Income statement

Question 3

On January 1, Durango Co.paid $80,000 for a new truck.Calculate the book value of the truck using straight-line depreciation at the end of the second year.

Accepted Answer

The answer of On January 1, Durango Co.paid $80,000 for...

Question 4

For each account listed in below, identify which reporting section (a through d)  each would appear on a company's financial statements.You may use each letter more than once or not at all.
-Depreciation expense

Accepted Answer

A)   Balance sheet-property, plant, and equipment
B)   Balance sheet-intangible assets
C)   Balance sheet-other
D)   Income statement

Question 5

For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions.You may use each letter more than once or not at all.
-Sales tax on equipment purchase

Accepted Answer

A)   Expensed immediately
B)   Capitalized as part of the cost of the new asset

Question 6

For each account listed in below, identify which reporting section (a through d)  each would appear on a company's financial statements.You may use each letter more than once or not at all.
-Goodwill

Accepted Answer

A)   Balance sheet-property, plant, and equipment
B)   Balance sheet-intangible assets
C)   Balance sheet-other
D)   Income statement

Question 7

Equipment with a cost of $22,000 and accumulated depreciation of $15,000 was retired with a gain of $1,000.The cash received from the disposition of equipment is

Accepted Answer

A)   $7,000.
B)   $8,000.
C)   $6,000.
D)   $14,000.

Question 8

Dorman Company purchased a new web server on January 1.The following information and expenditures related to this acquisition were made:
 
Specify and justify which of the preceding expenditures should be added to the cost of the web server and disclose that cost.Indicate how the expenditures excluded from the cost of the web server would be classified.

Accepted Answer

The cost of the web server is its cash o...

Question 9

On December 1, Breeze Corp.purchased a tract of land for $320,000 to be used as a factory site.An old unusable building on the land was razed (torn down), and the salvaged materials from the demolition were sold.These cash expenditures and receipts and other costs incurred during December are as follows:

Calculate the balance in Breeze's Land account on its December 31 balance sheet.

Accepted Answer

$320,000 + $11,000- ...

Exam 7: Long-Term Producing Assets and Investments in Equity Securities

Correct Answer
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The cost of the web server is its cash o...
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For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions.You may use each letter more than once or not at all. -Damaged during installation and repair costs

Correct Answer
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On January 1, Durango Co.paid $80,000 for a new truck.Calculate the book value of the truck using straight-line depreciation at the end of the second year.

Correct Answer
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Equipment with a cost of $22,000 and accumulated depreciation of $15,000 was retired with a gain of $1,000.The cash received from the disposition of equipment is

Correct Answer
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For each account listed in below, identify which reporting section (a through d) each would appear on a company's financial statements.You may use each letter more than once or not at all. -Patents

Correct Answer
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For each account listed in below, identify which reporting section (a through d) each would appear on a company's financial statements.You may use each letter more than once or not at all. -Depreciation expense

Correct Answer
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Correct Answer
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$320,000 + $11,000- ...
View Answer

For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions.You may use each letter more than once or not at all. -Sales tax on equipment purchase

Correct Answer
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For each account listed in below, identify which reporting section (a through d) each would appear on a company's financial statements.You may use each letter more than once or not at all. -Goodwill

Correct Answer
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Exam 7: Long-Term Producing Assets and Investments in Equity Securities

Correct AnswerverifiedThe cost of the web server is its cash o...View AnswerShow Answer

For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions.You may use each letter more than once or not at all. -Damaged during installation and repair costs

Correct AnswerverifiedShow Answer

On January 1, Durango Co.paid $80,000 for a new truck.Calculate the book value of the truck using straight-line depreciation at the end of the second year.

Correct AnswerverifiedShow Answer

Equipment with a cost of $22,000 and accumulated depreciation of $15,000 was retired with a gain of $1,000.The cash received from the disposition of equipment is

Correct AnswerverifiedShow Answer

For each account listed in below, identify which reporting section (a through d) each would appear on a company's financial statements.You may use each letter more than once or not at all. -Patents

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For each account listed in below, identify which reporting section (a through d) each would appear on a company's financial statements.You may use each letter more than once or not at all. -Depreciation expense

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Correct Answerverified$320,000 + $11,000- ...View AnswerShow Answer

For each transaction numbered 1 through 6 below, identify which accounting treatment-capitalized or expensed-should be used to properly account for the transactions.You may use each letter more than once or not at all. -Sales tax on equipment purchase

Correct AnswerverifiedShow Answer

For each account listed in below, identify which reporting section (a through d) each would appear on a company's financial statements.You may use each letter more than once or not at all. -Goodwill

Correct AnswerverifiedShow Answer

Correct Answer
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The cost of the web server is its cash o...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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$320,000 + $11,000- ...
View Answer

Correct Answer
verified

Correct Answer
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