Questions from Intermediate Accounting

Q: Mehta Company traded a used welding machine (cost $9,

Mehta Company traded a used welding machine (cost $9,000, accumulated depreciation $3,000) for office equipment with an estimated fair value of $5,000. Mehta also paid $3,000 cash in the transaction....

Q: Indicate where the following items would be shown on a balance sheet

Indicate where the following items would be shown on a balance sheet. (a) A lien that was attached to the land when purchased. (b) Landscaping costs. (c) Attorney’s fees and recording f...

Q: Cheng Company traded a used truck for a new truck. The

Cheng Company traded a used truck for a new truck. The used truck cost $30,000 and has accumulated depreciation of $27,000. The new truck is worth $37,000. Cheng also made a cash payment of $36,000. P...

Q: Slaton Corporation traded a used truck for a new truck. The

Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has accumulated depreciation of $17,000. The new truck is worth $35,000. Slaton also made a cash payment of $33,...

Q: Ottawa Corporation owns machinery that cost $20,000 when purchased

Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2011. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $...

Q: Use the information presented for Ottawa Corporation in BE10-14,

Use the information presented for Ottawa Corporation in BE10-14, but assume the machinery is sold for $5,200 instead of $10,500. In BE10-14 Ottawa Corporation owns machinery that cost $20,000 when pur...

Q: The following expenditures and receipts are related to land, land improvements

The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses.(a) Money borrowed to...

Q: Martin Buber Co. purchased land as a factory site for $

Martin Buber Co. purchased land as a factory site for $400,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,000 to ra...

Q: Kelly Clarkson Corporation operates a retail computer store. To improve delivery

Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The terms of acquisition for each truck...

Q: Stan Ott is evaluating two recent transactions involving exchanges of equipment.

Stan Ott is evaluating two recent transactions involving exchanges of equipment. In one case, the exchange has commercial substance. In the second situation, the exchange lacks commercial substance. E...