Questions from Financial Accounting

Q: For each of the following scenarios, indicate whether a long-

For each of the following scenarios, indicate whether a long-term asset has been impaired (Y for yes and N for no) and, if so, the amount of the loss that should be recorded.

Q: Murphy Self Storage purchased land, paying $150,000 cash

Murphy Self Storage purchased land, paying $150,000 cash as a down payment and signing a $180,000 note payable for the balance. Murphy also had to pay delinquent property tax of $2,500, title insuranc...

Q: Western Co. bought 3,200 shares of New Brunswick common

Western Co. bought 3,200 shares of New Brunswick common stock at $34; 600 shares of Paris stock at $46.25; and 1,000 shares of Ireland stock at $73—all as available-for-sale investments. At December 3...

Q: Use the data given in Short Exercise 8-3. Assume

Use the data given in Short Exercise 8-3. Assume that in November 2013, Western Motors sold half its investment in Phase Motors. The sale price was $130 million. Compute Western Motors’ gain or loss o...

Q: Macy’s, Inc., is one the nation’s premier retailers, with

Macy’s, Inc., is one the nation’s premier retailers, with fiscal 2010 sales of $25 billion. The company operates about 810 Macy’s department store...

Q: Excerpts from The XYZ Company statement of cash flows, as adapted

Excerpts from The XYZ Company statement of cash flows, as adapted, appear as follows: As the chief executive officer of The XYZ Company, your duty is to write the management letter to your stockhold...

Q: Maplewood Manufacturing bought three used machines in a $204,000

Maplewood Manufacturing bought three used machines in a $204,000 lump-sum purchase. An independent appraiser valued the machines as shown in the table. Machine No. ___________Appraised Value 1 …………………...

Q: 1. Makon Printers incurred costs of $1,500,

1. Makon Printers incurred costs of $1,500,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Makon Printers with a competitiv...

Q: Avril, Inc., sells electronics and appliances. The excerpts that

Avril, Inc., sells electronics and appliances. The excerpts that follow are adapted from Avril’s financial statements for 2012 and 2011. Requirements 1. How much was Avrilâ&#...

Q: Kerusi, Inc., has a popular line of boogie boards.

Kerusi, Inc., has a popular line of boogie boards. Kerusi reported net income of $64 million for 2012. Depreciation expense for the year totaled $30 million. Kerusi, Inc., depreciates plant assets ove...