Questions from Intermediate Accounting

Q: Early in 2024, the Excalibur Company began developing a new software

Early in 2024, the Excalibur Company began developing a new software package to be marketed. The project was completed in December 2024 at a cost of $6 million. Of this amount, $4 million was spent be...

Q: At December 31, 2023, Cord Company’s plant asset and accumulated

At December 31, 2023, Cord Company’s plant asset and accumulated depreciation and amortization accounts had balances as follows: Depreciation is computed to the nearest month and res...

Q: For each asset classification, prepare a schedule showing depreciation for the

For each asset classification, prepare a schedule showing depreciation for the year ended December 31, 2024, using the following depreciation methods and useful lives: Depreciation is computed to the...

Q: On April 1, 2022, the KB Toy Company purchased equipment

On April 1, 2022, the KB Toy Company purchased equipment to be used in its manufacturing process. The equipment cost $48,000, has an eight-year useful life, and has no residual value. The company uses...

Q: The Thompson Corporation, a manufacturer of steel products, began operations

The Thompson Corporation, a manufacturer of steel products, began operations on October 1, 2022. The accounting department of Thompson has started the fixed-asset and depreciation schedule presented b...

Q: On March 31, 2024, the Herzog Company purchased a factory

On March 31, 2024, the Herzog Company purchased a factory complete with vehicles and equipment. The allocation of the total purchase price of $1,000,000 to the various types of assets along with estim...

Q: In 2024, the Marion Company purchased land containing a mineral mine

In 2024, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional costs of $600,000 were incurred to develop the mine. Geologists estimated that 400,000 tons of ore would...

Q: The following information concerns the intangible assets of Baez Corporation:

The following information concerns the intangible assets of Baez Corporation: a. On June 30, 2024, Baez completed the acquisition of the Johnstone Corporation for $2,000,000 in cash. The fair value of...

Q: The property, plant, and equipment section of the Jasper Company’s

The property, plant, and equipment section of the Jasper Company’s December 31, 2023, balance sheet contained the following: The land and building were purchased at the beginning of...

Q: Fuzzy Monkey Technologies, Inc., purchased as a long-term

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2024. Management has the positive intent and ability to hold the bonds unti...