1.) Berger Company purchased equipment having an invoice price of $22,500. The terms of sale were 3/10, n/60,

1.) Berger Company purchased equipment having an invoice price of $22,500. The terms of sale were 3/10, n/60,

1.) Berger Company purchased equipment having an invoice price of $22,500. The terms of sale were 3/10, n/60, and Berger paid within the discount period. In addition, Berger paid a $235 delivery charge, $615 installation charge, and $1,528 sales tax. Berger paid for optional accident insurance for transport of the equipment amounting to $35. The amount recorded as the cost of this equipment is:$24,913$24,878$24,238 $24,2032.) The cost of successfully defending a patent in an infringement suit should beadded to the cost of the patent.charged to Legal Expenses.deducted from the book value of the patent.recognized as a loss in the current period.3.) Mather Company purchased equipment on January 1, 2012 at a total invoice cost of $224,000; additional costs of $4,000 for freight and $20,000 for installation were incurred. The equipment has an estimated salvage value of $8,000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2013 if the straight-line method of depreciation is used is:$88,000$99,200$96,000 $86,4004.) In April 2013, Sparkle Enterprises purchased the Crimson Mine at a cost of $18,000,000. The mine is estimated to contain 500,000 tons of ore with a residual value of $2,000,000 after mining operations are completed. During 2013, 120,000 tons of ore were removed from the mine and sold. In this situation:The amount of depletion deducted from revenue during 2013 is $3,840,000.The book value of the mine is $16,000,000 at the end of 2013.The amount of depletion deducted from revenue during 2013 is $2,000,000.The mine is classified as an intangible asset with in indefinite life and is not amortized.5.) The units-of-activity method is generally not suitable fordelivery equipment.buildings.factory machinery.airplanes.6.) On May 1, 2013, Pinkley Company sells office furniture for $150,000 cash. The office furniture originally cost $375,000 when purchased on January 1, 2006. Depreciation is recorded by the straight-line method over 10 years with a salvage value of $37,500. What depreciation expense should be recorded on this asset in 2013?$16,875$33,750$12,500$11,250 7.) The cost of land includes all of the following exceptparking lots.closing costs.real estate brokers commissions.accrued property taxes.8.) The interest charged on a $200,000 note payable, at the rate of 8%, on a 90-day note would be$4,000 $1,333$16,000$8,8889.) Which of the following statements about liabilities is incorrect?Companies sometimes showliabilities in order of magnitude.liabilities before assets.long-term liabilities before current assets.current liabilities netted against current assets.10.) The market interest rate is often called thecontractual rate.stated rate.effective rate.coupon rate.11.) A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is 5% and the balance in the Sales Revenue account amounted to $273,000, what is the amount of the sales taxes owed to the taxing agency?$260,000$273,000$13,000$13,650 12.) Corporations are granted the power to issue bonds throughfederal security laws.tax laws.state laws.bond debentures.13.) Farris Company borrowed $800,000 from BankTwo on January 1, 2012 in order to expand its mining capabilities. The five-year note required annual payments of $208,349 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2013?$522,729 $667,651$648,000$800,00014.) Bonds that are secured by real estate are termedbearer bonds.debentures.serial bonds.mortgage bonds.15.) Which of the following is usually not an accrued liability?Taxes payableNotes payableInterest payableWages payable


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