I got the solution to this question last night, while I was waiting to here from you. Please remember that on tomorrow this will be a timed test.
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Which of the following is NOT an intangible asset? (Points : 2) goodwill patent copyright cash
2. Which of the following statements about depreciation methods is true? (Points : 2) firms must use the same depreciation methods for tax and financial reporting purposes firms cannot use the same depreciation methods for tax and financial reporting purposes firms usually use the same depreciation methods for tax and financial reporting purposes firms seldom use the same depreciation methods for tax and financial reporting purposes
3. How is the depreciation process consistent with the matching principle? (Points : 2) the accumulated depreciation account is matched with the plant asset account on the balance sheet the cost of consuming plant assets is matched with the periods that benefit from using the assets the book value of the asset is matched with the current market value of the asset the depreciation method used is matched with the expected productivity of the asset
Extreme Manufacturing purchased machinery as follows:
Estimated useful life
Under the double-declining-balance method, what will depreciation expense be forYear 2?
(Points : 2) $9,360 $5,616 $1,116 $15,600
Trading and available-for-sale securities are reported on the balance sheet at
(Points : 2) market value maturity value cost amortized cost
Marbella Company has an investment in stock, classified as available-for-sale, with the following information at December 31, 2007:
How would Marbella report this information?
(Points : 2) unrealized holding gain of $40,000 added to stockholders' equity realized gain added to the income statement of $40,000 unrealized holding gain deducted from stockholders' equity of $40,000 unrealized holding gain added to the income statement of $40,000
Cash received from the sale of long-term assets is considered an operating activity.
(Points : 2) True False
The excess of cost over the fair market value of net assets acquired when one company purchases another company should be reported as a(n)
(Points : 2) fixed asset intangible asset expense of the period in which the acquisition occurs revenue of the period in which the acquisition occurs
Gonzo Company purchased 100% of Bean Corporation for $600,000 cash. Book value of Bean's net assets was $500,000 at the time and the fair market value was $580,000. Which of the following will be recorded on Gonzo's books for this event?
(Points : 2) total assets of Bean Company of $600,000 with goodwill being $100,000 total assets of Bean Company of $500,000 with goodwill being $20,000 total assets of Bean Company of $580,000 with goodwill being $100,000 total assets of Bean Company of $600,000 with goodwill being $20,000
(Points : 2) results in lower net income in earlier years and higher net income in later years is used more often on the income statement than is the straight-line method leads to higher book values for depreciable assets than does the straight-line method allocates larger portions of cost to later periods than to earlier
Emergent Markets Corporation purchased a machine for $200,000 on January 1, 2007. The estimated life is 10 years. What is the book value on the December 31, 2009 balance sheet assuming straight-line depreciation is used and estimated residual value is zero?
(Points : 2) $180,000 $160,000 $140,000 $ 60,000
Deferred charges are:
(Points : 2) typically not amortized short-term assets assets prepaid that produce long-term profits long-term assets included with plant assets
A balance sheet reports an investment in common stock under the category of long-term assets. Which of the following MIGHT be the reason(s) why these shares are reported in that section of the balance sheet?Management intends to They are nothold them long-term marketable
(Points : 2) Yes Yes No Yes Yes No No No
A bond is purchased at a discount. What will happen to the net carrying value of the bond on the balance sheet as its maturity date approaches?
(Points : 2) stays the same increases decreases cannot be determined from the data given
The book value of plant assets is calculated as the cost of the assets plus accumulated depreciation.
Firms must use the same depreciation method for tax as they do for financial reporting purposes.
A coal mine asset was purchased for $660,000. Estimated production is 20,000,000 tons after which the mine will be sold for $60,000. During a recent year, 6,500,000 tons of coal were produced and sold. The depletion expense for the year would be
(Points : 2) $175,500 $195,000 $214,500 $225,000
Purple Company owns 25% of the common stock of Marroon after purchasing 45,000 shares of Marroon's stock at a price of $30 per share on January 1, 2007. At the end of the year, Marroon reported net income of $100,000 and paid dividends of $40,000. What is the book value of Purple Company's investment at year-end?
(Points : 2) $1,410,000 $1,450,000 $1,365,000 $1,350,000
When companies have a temporary surplus of cash, they often invest it in
(Points : 2) short-term marketable securities long-term marketable securities intangible assets property, plant, and equipment
Long-term investments in the common stock of another company normally should be accounted for using the equity method if the investor owns an interest of
(Points : 2) more than 50 percent not less than 90 percent not less than 20 percent nor more than 50 percent not more than 20 percent
one hour 40 mins
Thank you Linda, I will see you again next saturday at 11:00 am. Can you please confirm this time?
Thank you Linda I will allow you time and let you know when I no longer need a solution.
I would like to know will you be online this Saturday at 11:00 AM? I have another time test for the week and also next week. Please confirm that you will be online and available.
Ok, I will be sending you the information in a few minutes.
The Philandering Soy Company reported the following accounts receivable balances for 2008:
This information means that
Hello, we got 38/40. I will see you next week at 11:00 Am. Thanks for your help.
Are you avilable to start the timed test?