Questions from Intermediate Accounting

Q: A company buys a machine for $61,700 on January

A company buys a machine for $61,700 on January 1, 2010. The maintenance costs for the years 2010–2013 are as follows: 2010, $4,900; 2011, $4,700; 2012, $12,400 (includes $7,800 for cost of a new moto...

Q: Lyell Company started a newspaper delivery business on January 1, 2010

Lyell Company started a newspaper delivery business on January 1, 2010. On that date, the company purchased a small pickup truck for $14,000. Lyell planned to depreciate the truck over three years and...

Q: What role does residual, or salvage, value play in the

What role does residual, or salvage, value play in the various methods of time-factor depreciation?

Q: The FASB permits the use of an average market value of plan

The FASB permits the use of an average market value of plan assets for some pension computations. In other cases, the fair market value at a specific measurement date must be used. Under what circumst...

Q: Wright Manufacturing Co. acquired 20 similar machines at the beginning of

Wright Manufacturing Co. acquired 20 similar machines at the beginning of 2008 for a total cost of $150,000. The machines have an average life of five years and no residual value. The group depreciati...

Q: Machines are acquired by Milestone Corporation on April 1, 2013,

Machines are acquired by Milestone Corporation on April 1, 2013, as follows: Instructions: 1. Calculate the group depreciation rate for this group. 2. Calculate the average life in years for the gro...

Q: The following independent cases describe facts concerning the ownership of racing bicycles

The following independent cases describe facts concerning the ownership of racing bicycles. (a) Piero Niccolo, winner of the 2011 Milan–San Remo cycling classic, purchased a new Fierro bicycle for $6,...

Q: Roscoe Corp. was organized on January 2, 2013. It

Roscoe Corp. was organized on January 2, 2013. It was authorized to issue 74,000 shares of common stock. On the date of organization, it sold 20,000 shares at $50 per share and gave the remaining shar...

Q: In 2009, Heslop Mining Company purchased property with natural resources for

In 2009, Heslop Mining Company purchased property with natural resources for $5,400,000. The property was relatively close to a large city and had an expected residual value of $700,000. The following...

Q: In 2008, Sunbeam Corporation acquired a silver mine in eastern Alaska

In 2008, Sunbeam Corporation acquired a silver mine in eastern Alaska. Because the mine is located deep in the Alaskan frontier, Sunbeam was able to acquire the mine for the low price of $50,000. In 2...