Questions from Financial Accounting

Q: Assume McGregor Consultants purchased a building for $445,000 and

Assume McGregor Consultants purchased a building for $445,000 and depreciated it on a straight-line basis over 40 years. The estimated residual value was $90,000. After using the building for 20 year...

Q: On January 1, 2015, Alpha Manufacturing purchased a machine for

On January 1, 2015, Alpha Manufacturing purchased a machine for $920,000. The company expects the machine to remain useful for eight years and to have a residual value of $70,000. Alpha Manufacturing...

Q: Assume that on January 2, 2016, Sonoma-Maine Furniture

Assume that on January 2, 2016, Sonoma-Maine Furniture purchased fixtures for $8,200 cash, expecting the fixtures to remain in service for five years. Sonoma-Maine has depreciated the fixtures on a do...

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

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

Q: Goldstein Mines paid $424,000 for the right to extract

Goldstein Mines paid $424,000 for the right to extract ore from a 200,000-ton mineral deposit. In addition to the purchase price, Goldstein Mines also paid a $100 filing fee, a $1,900 license fee to t...

Q: 1. Maynard Printers incurred external costs of $800,000

1. Maynard Printers incurred external costs of $800,000 for a patent for a new laser printer. Although the patent gives legal protection for 20 years, it is expected to provide Maynard Printers with a...

Q: Assume Caltron Co. paid $19 million to purchase Burton Industries

Assume Caltron Co. paid $19 million to purchase Burton Industries. Assume further that Burton Industries had the following summarized data at the time of the Caltron Co. acquisition (amounts in millio...

Q: Gunny Stores, Inc., one of the nation’s largest grocery retailers

Gunny Stores, Inc., one of the nation’s largest grocery retailers, reported the following information (adapted) in its comparative financial statements for the fiscal year ended Janu...

Q: Assume Abbey Corporation completed the following transactions: a. Sold

Assume Abbey Corporation completed the following transactions: a. Sold a store building for $650,000. The building had cost Abbey $1,400,000, and at the time of the sale, its accumulated depreciation...

Q: Pierce Self Storage purchased land, paying $145,000 cash

Pierce Self Storage purchased land, paying $145,000 cash as a down payment and signing a $175,000 note payable for the balance. Pierce also had to pay delinquent property tax of $1,000, title insuranc...