Questions from Intermediate Accounting

Q: Federer Drilling Company has leased property on which oil has been discovered

Federer Drilling Company has leased property on which oil has been discovered. Wells on this property produced 18,000 barrels of oil during the past year that sold at an average sales price of $65 per...

Q: Using the appropriate interest table, answer the following questions. (

Using the appropriate interest table, answer the following questions. (Each case is independent of the others). (a) What is the future value of 20 periodic payments of $5,000 each made at the beginnin...

Q: Johnson Co. accepts a note receivable from a customer in exchange

Johnson Co. accepts a note receivable from a customer in exchange for some damaged inventory. The note requires the customer make semiannual installments of $50,000 each for 10 years. The first instal...

Q: Jonas Lumber Company owns a 7,000-acre tract of

Jonas Lumber Company owns a 7,000-acre tract of timber purchased in 2005 at a cost of $1,300 per acre. At the time of purchase, the land was estimated to have a value of $300 per acre without the timb...

Q: Henrik Mining Company purchased land on February 1, 2012, at

Henrik Mining Company purchased land on February 1, 2012, at a cost of $1,250,000. It estimated that a total of 60,000 tons of mineral was available for mining. After it has removed all the natural re...

Q: At the beginning of 2012, Callaway Company acquired a mine for

At the beginning of 2012, Callaway Company acquired a mine for $850,000. Of this amount, $100,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducte...

Q: The 2009 Annual Report of McDonald’s Corporation contains the following information.

The 2009 Annual Report of McDonald’s Corporation contains the following information. Instructions Compute the following ratios for McDonald’s for 2009. (a) Asset...

Q: Annunzio Enterprises purchased a delivery truck on January 1, 2012,

Annunzio Enterprises purchased a delivery truck on January 1, 2012, at a cost of $41,000. The truck has a useful life of 7 years with an estimated salvage value of $6,000. The straight-line method is...

Q: Elwood Inc. purchased computer equipment on March 1, 2012,

Elwood Inc. purchased computer equipment on March 1, 2012, for $36,000. The computer equipment has a useful life of 10 years and a salvage value of $3,000. For tax purposes, the MACRS class life is 5...

Q: During 2009, Thompson Corporation spent $170,000 in research

During 2009, Thompson Corporation spent $170,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2009, and ha...