Questions from Intermediate Accounting

Q: Pinewood Company purchased two buildings on four acres of land. The

Pinewood Company purchased two buildings on four acres of land. The lump-sum purchase price was $900,000. According to independent appraisals, the fair values were $450,000 (building A) and $250,000 (...

Q: On January 1, 2018, Byner Company purchased a used tractor

On January 1, 2018, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring $25,000 to be paid on December 31, 2020. The fair value of the tracto...

Q: Teradene Corporation purchased land as a factory site and contracted with Maxtor

Teradene Corporation purchased land as a factory site and contracted with Maxtor Construction to construct a factory. Teradene made the following expenditures related to the acquisition of the land, b...

Q: Southern Company owns a building that it leases to others. The

Southern Company owns a building that it leases to others. The building’s fair value is $1,400,000 and its book value is $800,000 (original cost of $2,000,000 less accumulated depreciation of $1,200,0...

Q: On September 3, 2018, the Robers Company exchanged equipment with

On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: To equalize the exchange, Phifer paid Robers $5,000 in cash. Required...

Q: Lance-Hefner Specialty Shoppes decided to use the dollar-value

Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide the following information: Related retail price indexes are as fo...

Q: Case A. Kapono Farms exchanged an old tractor for a newer

Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $12,000 (original cost of $28,000 less accumulated depreciation of $16,000) and a fair value of $9,...

Q: On January 1, 2018, the Mason Manufacturing Company began construction

On January 1, 2018, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2019. Expenditures on the projec...

Q: [This is a variation of the previous problem, modified to

[This is a variation of the previous problem, modified to focus on the weighted-average interest method.] Previous Problem On January 1, 2018, the Mason Manufacturing Company began construction of a...

Q: At the beginning of 2018, a company adopts the dollar-

At the beginning of 2018, a company adopts the dollar-value LIFO inventory method for its one inventory pool. The pool’s value on that date was $1,400,000. The 2018 ending inventory valued at year-end...