Phelan Enterprises has a building that cost $ 987,000 when it was purchased five years ago. This building is being depreciated using the straight- line depreciation method over its useful life of 30 years. Recently the building was appraised for $ 1,000,000. What amount would be shown on the external balance sheet? Why? What amount(s) do you believe is important for management to understand? Why?
Answer to relevant QuestionsYoungberg Company owns several acres of land that were recently appraised at $ 1.5 million. Youngberg purchased this land 10 years ago at a cost of $ 150,000. What amount should Youngberg show on its external balance sheet? ...Linden Company provided the following information: Current assets ..... $ 6,930 Current liabilities ..... 6,413 Liquid assets ...... 2,001 Total assets ....... 25,327 Total liabilities ..... 13,453 Required: A. Calculate ...Keys, Inc., compared the cost of its marketable securities to their market value at the end of 2010. This comparison follows: Management would like to classify these securities as available- for- sale and, therefore, report ...Company A’s inventory decreased by $ 10,000 during the period, while its accounts payable for inventory increased by $ 6,000. Which is greater, cost of goods sold or cash paid for inventory? Why? For the year ended December 31, 2010, Brown, Inc., reported net income of $ 125,000 on the accrual basis of accounting. Using the following information, convert the accrual- based net income to the cash basis. A. The ...
Post your question