6. The items below represent expenditures related to the construction of a new office building Cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
6. The items below represent expenditures related to the construction of a new office building Cost of land $ 210,000 Cost of removing old structures Grading the site 2.000 Legal fees related to land purchase Payment of delinquent property taxes $ 2,000 5,000 4,500 900,000 Cost of obtaining building permits 4,500 Payment to building contractor Interest cost incurred during construction Cost of paving parking lot 20,000 39,000 Cost of fencing 5,000 The proper balances for the Land account and the Building account should be: Land $218,000 Building $900,000 $214,500 $901,000 $223,500 $943,500 D $223,500 $944,000 7. Which of the following statements is false? a. Accelerated depreciation methods record more depreciation expense over the life of an asset than either the straight-line method or the unit-of-production method. b. The cost of an asset, its residual value, and its estimated useful life are all used in computing depreciation. c. The unit-of-production method is most appropriate for an asset that wears out due to physical use. d. Land is never depreciated. Table ACC 203-1 On January 1, 2018, Knight Security Service purchased an alarm monitoring system for $110,000. The system is expected to be used for 5 years, after which it can be sold for $20,000. 8. Refer to Table ACC 203-1. What is the book value of the equipment on December 31, 2019, if Knight uses the straight-line method of depreciation? c. $74,000 a. $72,000 d. $54,000 b. $92,000 A8C0 А B с 6. The items below represent expenditures related to the construction of a new office building Cost of land $ 210,000 Cost of removing old structures Grading the site 2.000 Legal fees related to land purchase Payment of delinquent property taxes $ 2,000 5,000 4,500 900,000 Cost of obtaining building permits 4,500 Payment to building contractor Interest cost incurred during construction Cost of paving parking lot 20,000 39,000 Cost of fencing 5,000 The proper balances for the Land account and the Building account should be: Land $218,000 Building $900,000 $214,500 $901,000 $223,500 $943,500 D $223,500 $944,000 7. Which of the following statements is false? a. Accelerated depreciation methods record more depreciation expense over the life of an asset than either the straight-line method or the unit-of-production method. b. The cost of an asset, its residual value, and its estimated useful life are all used in computing depreciation. c. The unit-of-production method is most appropriate for an asset that wears out due to physical use. d. Land is never depreciated. Table ACC 203-1 On January 1, 2018, Knight Security Service purchased an alarm monitoring system for $110,000. The system is expected to be used for 5 years, after which it can be sold for $20,000. 8. Refer to Table ACC 203-1. What is the book value of the equipment on December 31, 2019, if Knight uses the straight-line method of depreciation? c. $74,000 a. $72,000 d. $54,000 b. $92,000 A8C0 А B с
Expert Answer:
Answer rating: 100% (QA)
6 6 Cost of land Gost of land Cost of land 210000 2... View the full answer
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these general management questions
-
The structure steel work of a new office building is finished. Across the street, 60 feet from the ground floor or the freight elevator shaft in the building, a spectator is standing and watching the...
-
The information below relates to the construction of a new recreation building in the City of Lander. Lander's fiscal year ends on June 30. Fiscal 2013 transactions 1. A bond issue in the amount of $...
-
Which of the following statements is false regarding the reason that inventory costs are recorded as expenses when sold rather than when incurred? a. It gives the company's accounting personnel more...
-
A rectangular loop of wire 24 cm by 72 cm is bent into an L shape, as shown in FIGURE 23-49. The magnetic field in the vicinity of the loop has a magnitude of 0.035 T and points in a direction...
-
Explain why it is important to have a marketing plan and include what you think are the most important parts of the marketing plan. Justify your selections.
-
What is thermal cutting?
-
The Claremont Company reported the following financial results during its first two years of operations. Assuming that no dividends were declared and that no additional capital was invested in Year...
-
Assume a government leases equipment to be used in governmental activities under a noncancelable lease, meeting the requirements for classification as a capital lease. Where would the capital lease...
-
El relato autobiogrfico "Cajas de cartn" 1. Qu cuenta un relato autobiogrfico? b. un evento importante en la vida del autor a. la vida de una fi gura histrica b. un evento importante en la vida del...
-
The financial statements of Aritzia Inc. are presented in Appendix A at the end of this textbook. Instructions a. What title does Aritzia use for its income statement? What title does Aritzia use for...
-
This organization oversees 24 federal agencies related to safety within the US, and developed an expedited process in documenting foreign students wanting to learn to fly aircraft greater than 12,500...
-
Design a steam power plant using the Rankine cycle assuming that the turbine operates with an entering pressure of 6.1 MPa, an entering temperature of 510 C, and an exiting pressure of 1.5 kPa. Find...
-
What is the importance of writing minutes of the meeting? 2. What will happen if a company does not write minutes of the meeting every meeting? 3. What is the most difficult part in writing the...
-
CLASS DISCUSSION One way that information is communicated regarding performance improvement is through organizing and facilitating meetings. Do you feel it should be standard practice to take minutes...
-
Determine the mass m that can be lifted by a rope with three-quarters of a turn around a fixed horizontal shaft (u = 0.3) if a force of 15 kN is applied to its other end. = 0.3 m 15 kN
-
Suppose you will receive $100 each month for the next 5 years. How much is this worth to you today if your discount rate is 7%? Round to the nearest dollar. Type your numeric answer and submit
-
Problem 7 For the system shown in Figure 7, determine the moment about (a) point A and (b) point B. 10 lb 10 lb B A 9 ft 1 ft FIGURE 7 6 ft
-
If (x) 0 on the interval [a, b], the definite integral gives the exact area under the curve between x = a and x = b.
-
When does a lessor record an immediate profit at the commencement of a lease?
-
On February 1, 2013, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $800,000. The bonds sold for $731,364 and mature on January 31, 2033 (20 years). The market yield for...
-
Harwell Company manufactures automobile tires. On July 15, 2013, the company sold 1,000 tires to the Nixon Car Company for $50 each. The terms of the sale were 2/10, n/30. Harwell uses the gross...
-
In the market for insurance, the moral hazard problem leads a. those most likely to collect on insurance to buy it. b. those who buy insurance to take fewer precautions to avoid the insured risk. c....
-
If, after you buy a car with air bags, you start to drive recklessly, it would be an illustration of a. the moral hazard problem. b. the free-rider problem. c. the adverse selection problem. d. the...
-
Sometimes the market system fails to produce efficient outcomes because of side effects economists call _________.
Study smarter with the SolutionInn App