Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.

Get a Professional Answer

Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.

100% Satisfaction Guarantee

Rate the answer you receive.

Ask atluriram Your Own Question

atluriram, Professor

Category: Homework

Satisfied Customers: 533

Experience: MASTER OF COMMERCE, BACHELOR OF LAWS, COMPANY SECRETARY QUALIFICATIONS

22289965

Type Your Homework Question Here...

atluriram is online now

1) Xy company started construction of a new office building

This answer was rated:

★★★★★

1) Xy company started construction of a new office building on Jan 1, 2000 & moved into a finished building July 1, 2002. Of the buildings $2,500,000 total cost, $200,000,000 was incurred by Dec 31, 2000 in even increments throughout the year. Xy weighted average borrowing rate was 12% throughout 2000 and the actual amount of interest incurred by Xy during 2000 was $135,000. What amount should Xy report as capitalized interest at Dec 31, 2000: A. $120,000 B. $135,000 C. $150,000 D. $240,000

2) The XY company purchased an oil well lease for $8,000,000 at the beginning of Yr 7. During Yr 7, it drilled 10 oil wells at a cost of $9,000,000 each. Three wells were economically feasable wells and the remaining wells were dry holes. If Xy uses the successful-efforts approach to determine the asset cost, the capitalized cost is: A. $9,000,000 B. $27,000,000 C. $35,000,000 D. $98,000,000

3) Xy Corp. acquired a new machine on Jan 2, Yr 1 at a cost of $63,000. The machine had an expected life of 4 yrs and a salvage value of $3,000. If Xy uses the sum of the Yrs digitis method of depreciation, the depreciation expense record in Yr 3 is: A. $8,000 B. $12,000 C. $16,000 D. $20,000

4) Xy Corp. acquired a new machine on Jan 2, Yr 1 at a cost of $63,000. The machine had an expected life of 4 yrs and a salvage value of $3,000. If Xy uses the straight line method of depreciation, the depreciation expense record in Yr 4 is: A. $8,000 B. $12,000 C. $15,000 D. $20,000

5) Xy Corp. acquired a new machine on Jan 2, Yr 1 at a cost of $63,000. The machine had an expected life of 4 yrs and a salvage value of $3,000. If Xy uses the double-declining method of depreciation, the depreciation expense record in Yr 2 is: A. $11,813 B. $15,000 C. $15,750 D. $31,500

6) Xy company sold equipm,ent that originally cost $50,000 for $12,000. The asset had accumulated depreciation of $30,000 at the end of the previous fiscal Yr. Depreciation expense to the date of the sale for the current fiscal Yr is $4,000. Which of the following line items related to this sale would appear in the income statement for Xy in the current fiscal Yr? A. Extraordinary gain of $8,000 B. Extraordinary loss of $8,000 C. Ordinary gain of $4,000 D. Ordinary loss of $4,000

7) Xy sold a machine. The machine had accumulated depreciation of $25,000 and a salvage value of $3,000. If the machine sold for $8,000 and a gain of $2,000 is recognized on the sale, the original cost of the machine was: A. $27,000 B. $31,000 C. $33,000 D. $35,000

8) Xy Company purchased a new piece of machinery early in Jan of the current fiscal Yr for $35,000. Xy spent $1,000 for freight on the equipment and $3,000 to have the machine installed. Xy estimated the salvage value of the machine to be $3,000 and the useful life to be 10 Yrs. Using the Straight-line method of depreciation, the expense for the current fiscal Yr would be: A. $3,100 B. $3,200 C. $3,400 D. $3,600