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What are the appropriate amounts that Mooney should record for the land, warehouse, and office building, respectively Use the following information to answer questions 1 and 2. Jamison Company purchased the assets of Booker Company at an auction for $1,400,000. An independent appraisal of the fair value of the assets is listed below: Land $475,000 Building 700,000 Equipment 525,000 Trucks 850,000 1. Assuming that specific identi ...

Other / Other 11 May 2016

Prepare the entries on both companies' books assuming the exchange has commercial substance. Pr. 1—Nonmonetary exchange. Layne Co. has a machine that cost $255,000 on March 20, 2007. This old machine had an estimated life of ten years and a salvage value of $15,000. On December 23, 2011, the old machine is exchanged for a new machine with a fair value of $142,000. The exchange lacked commercial substance. Layne also paid $18,000 ca ...

Other / Other 11 May 2016

Whether Lee chooses to account for the grant as deferred revenue or as an adjustment Use the following information for questions 1–5. Lee Company received an HK$1,800,000 subsidy from the government to purchase manufacturing equipment on January, 2, 2011. The equipment has a cost of HK$3,000,000, a useful life a six years, and no salvage value. Lee depreciates the equipment on a straight-line basis. 1. If Lee chooses to ac ...

Other / Other 11 May 2016

Show the calculation of the gain to be recognized from the exchange. Ex. 1—Non-monetary exchange. A machine cost $80,000, has annual depreciation expense of $16,000, and has accumulated depreciation of $40,000 on December 31, 2010. On April 1, 2011, when the machine has a fair value of $32,000, it is exchanged for a similar machine with a fair value of $96,000 and the proper amount of cash is paid. The exchange lacked commercial subs ...

Other / Other 11 May 2016

Show the calculation of the amount of the gain or loss to be recognized by Rogers Co. Pr. 1—Non-monetary exchanges. Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings. The following transactions occurred in 2011: March 31, 2011— Negotiations which began in 2010 were completed and a warehouse purchased 1/1/02 (depreciation has been proper ...

Other / Other 11 May 2016

Prepare the journal entry(ies) to record the grant and note payable on January 2, 2011 Ex. 1––Non-Monetary Exchange Ramirez Company exchanged equipment used in its manufacturing operations plus $6,000 in cash for similar equipment used in the operations of Kennedy Company. The following information pertains to the exchange. Ramirez Co Kennedy Co Equipment (cost) 84,000 $84,000 Accumulated depreciat ...

Other / Other 11 May 2016

Calculate the weighted-average accumulated expenditures. Ex. 1—Weighted-Average Accumulated Expenditures. On April 1, Paine Co. began construction of a small building. Payments of $120,000 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted-average accumulated expen ...

Other / Other 11 May 2016

What amount of gain or loss should Hoyle recognize on the exchange Use the following information for questions 1 through 3. Two independent companies, Hager Co. and Shaw Co., are in the home building business. Each owns a tract of land held for development, but each would prefer to build on the other's land. They agree to exchange their land. An appraiser was hired, and from her report and the companies' records, the following informat ...

Other / Other 11 May 2016

Which of the following journal entries would Huang make to record the exchange 1. During 2011, Chan Company incurred average accumulated expenditures of HK$3,200,000 during construction of assets that qualified for capitalization of interest. The only debt outstanding during 2011 was a HK$5,000,000, 7.5%, 6-year note payable dated July 1, 2010. What is the amount of interest that should be capitalized by Chan during 2011? a. HK$0. b. HK ...

Other / Other 11 May 2016

Weighted-average accumulated expenditures qualifying for capitalization of interest cost. Pr. 1—Capitalization of interest. Early in 2010, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2010 and was completed on December 31, 2010. Dobbs made the following payments to Kiner, Inc. during 2010: Date Payment June 1, 2010 $ ...

Other / Other 11 May 2016