Questions from Financial Accounting

Q: Valley Mines paid $428,000 for the right to extract

Valley Mines paid $428,000 for the right to extract ore from a 325,000-ton mineral deposit. In addition to the purchase price, Valley Mines also paid a $130 fi ling fee, a $2,300 license fee to the st...

Q: 1. Mayflower Printers incurred costs of $1,200,

1. Mayflower Printers incurred costs of $1,200,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Mayflower Printers with a co...

Q: At the end of 2011, Solar Power Associates (SPA)

At the end of 2011, Solar Power Associates (SPA) had total assets of $17.6 billion and total liabilities of $9 billion. Included among the assets were property, plant, and equipment with a cost of $4....

Q: Assume Doltron paid $19 million to purchase Northeast.com.

Assume Doltron paid $19 million to purchase Northeast.com. Assume further that Northeast had the following summarized data at the time of the Doltron acquisition (amounts in millions): Northeast&aci...

Q: Lowe’s Companies, Inc., the second-largest home improvement retailer

Lowe’s Companies, Inc., the second-largest home improvement retailer, reported the following information (adapted) for its fiscal year ended January 31, 2011: Requirements 1. Compu...

Q: The European Press (TEP) is a major telecommunication conglomerate.

The European Press (TEP) is a major telecommunication conglomerate. Assume that early in year 1, TEP purchased equipment at a cost of 20 million euros (€20 million). Management expects the equipment t...

Q: Assume Shoe Mania Corporation completed the following transactions: a.

Assume Shoe Mania Corporation completed the following transactions: a. Sold a store building for $620,000. The building had cost Shoe Mania $1,400,000, and at the time of the sale, its accumulated dep...

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 million. To get the maximum tax deduction, the bank’s managers allocated 80% of the purchase price to the building...

Q: North Mark (NM) owns vast amounts of corporate bonds.

North Mark (NM) owns vast amounts of corporate bonds. Suppose that on June 30, 2012, NM buys $800,000 of CitiSide bonds at a price of 102. The CitiSide bonds pay cash interest at the annual rate of 7%...

Q: Ralph’s Pizza bought a used Toyota delivery van on January 2,

Ralph’s Pizza bought a used Toyota delivery van on January 2, 2012, for $18,600. The van was expected to remain in service for four years (35,000 miles). At the end of its useful life, Ralph’s officia...