Questions from Financial Accounting

Q: Question: Assume G-1 Designing Consultants purchased a building for

Assume G-1 Designing Consultants purchased a building for $400,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $55,000. After using the building for 2...

Q: United Jersey Bank of Princeton purchased land and a building for the

United Jersey Bank of Princeton purchased land and a building for the lump sum of $6.0 million. To get the maximum tax deduction, the banks managers allocated 80% of the purchase price to the building...

Q: Assume that on January 2, 2010, Maxwell of Michigan purchased

Assume that on January 2, 2010, Maxwell of Michigan purchased fixtures for $8,800 cash, expecting the fixtures to remain in service for five years. Maxwell has depreciated the fixtures on a double-dec...

Q: Honest Truck Company is a large trucking company that operates throughout the

Honest Truck Company is a large trucking company that operates throughout the United States. Honest Truck Company uses the units-of-production (UOP) method to depreciate its trucks. Honest Truck Compa...

Q: Rocky Mines paid $426,000 for the right to extract

Rocky Mines paid $426,000 for the right to extract ore from a 275,000-ton mineral deposit. In addition to the purchase price, Rocky Mines also paid a $120 filing fee, a $2,100 license fee to the state...

Q: 1. Morris Printers purchased for $900,000 a patent

1. Morris Printers purchased for $900,000 a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Morris Printers with a competitive advant...

Q: Assume Haledan paid $16 million to purchase Northshore.com.

Assume Haledan paid $16 million to purchase Northshore.com. Assume further that Northshore had the following summarized data at the time of the Haledan acquisition (amounts in millions): Northshores...

Q: Eastwood Manufacturing bought three used machines in a $216,000

Eastwood Manufacturing bought three used machines in a $216,000 lump-sum purchase. An independent appraiser valued the machines as shown in the table. What is each machines individual cost? Immediate...

Q: Assume Delicious Desserts, Inc., purchased conveyor-belt machinery.

Assume Delicious Desserts, Inc., purchased conveyor-belt machinery. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery: a. Sales tax paid...

Q: During 2010, Tao Book Store paid $488,000 for

During 2010, Tao Book Store paid $488,000 for land and built a store in Detroit. Prior to construction, the city of Detroit charged Tao $1,800 for a building permit, which Tao paid. Tao also paid $15,...