Can someone please provide the solutions. No explanation needed, just the answer
ID: 2406922 • Letter: C
Question
Can someone please provide the solutions. No explanation needed, just the answers so I can double check my work.
35. Assume the following long-term debt structure for Parton Stores:
Construction Loan at 5% on Building Under Construction . . . . . . . ..$2,000,000
Other Borrowings at 6% Average Rate . . . . . . . . . . . . . . . . . . . . . . . . .7,200,000
Total Long-Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,200,000
The account Building Under Construction has an average balance during the year of $6,000,000. Parton Stores bases the amount of interest capitalized on the new construction-related borrowing, $2,000,000, and enough of the other borrowing to bring the total to $6,000,000.
How much does Parton Stores capitalize interest on the new construction?
a.
$240,000
b.
$300,000
c.
$320,000
d.
$340,000
e.
$360,000
58. U.S. GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses. The second category addresses intangibles, other than goodwill, not subject to amortization. This category does not include:
a.
brand names.
b.
trademarks.
c.
franchise rights.
d.
renewable licenses.
e.
none of the above
94. A firm purchased an office machine for $4,600, estimated that it will use the machine for 15 years, and estimated a salvage value of $100. On December 31 of the sixth year, before closing the books for the year, the firm analyzed its estimates of useful life and salvage value. In light of new information, the firm estimated that the machine will have a total useful life of only 10 years, and the salvage estimate of $100 remains reasonable.
The new estimate of the remaining life is five years (the year just ended plus the next four). The depreciation entry on December 31 of the sixth year and each year thereafter is:
a.
Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
b.
Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .600
c.
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
d.
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . .600
Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
e.
none of the above
Chen Company office equipment costs $10,000, has an expected life of four years and a salvage value of $400. The firm has depreciated this asset on a straight-line basis. The firm has recorded depreciation for two years and then sells the equipment at midyear in the third year.
98. What is the entry to record depreciation charges up to the date of sale for Chen Company?
a.
Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
b.
Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400
c.
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
d.
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400
Depreciation Expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400
e.
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200
99. If the Chen Company sells the equipment for $4,000 cash, the entry to record the sale would be as follows:
a.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,000
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 10,000
b.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 10,000
c.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
Accumulated Depreciation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
d.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Accumulated Depreciation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
e.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
100. If the Chen Company sells the equipment for $4,600 cash, the entry to record the sale would be as follows:
a.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Gain on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
b.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Gain on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
c.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
d.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Gain on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
e.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
101. If the Chen Company sells the equipment for $3,000 cash, the entry to record the sale would be as follows:
a.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Loss on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
b.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000
Loss on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
c.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Salvage Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Loss on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
d.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Loss on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
e.
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,000
Loss on Sale of Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
104. IFRS uses the idea of a disposal group, a group of assets and directly associated liabilities that a firm will dispose of as a group in a single transaction. The disposal group notion of IFRS envisions a larger unit than the component notion of U.S. GAAP. In the year that a firm decides to sell or otherwise dispose of a unit that qualifies as a(n) _____ it aggregates the assets and liabilities of that unit on the balance sheet into four groups: current assets, noncurrent assets, current liabilities, and noncurrent liabilities.
a.
continuing operation
b.
discontinued operation
c.
extraordinary gain or loss
d.
impaired operation
e.
paid-in-capital
110. Warrior Dash Express Inc. owns a moving van that originally cost $500,000 and currently has $450,000 of accumulated depreciation. The fair value of the moving van is $120,000. Warrior Dash Express Inc. exchanges the van plus $480,000 in cash for a new moving van costing $600,000. The entry to record the transaction is as follows:
a.
Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . .450,000
Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
Gain on Trade-in of Old Van . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
b.
Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . .450,000
Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
c.
Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . .380,000
Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
d.
Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
Gain on Trade-in of Old Van . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000
Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Accumulated Depreciation (old van) . . . . . . . . . . . . . . . . . . . . . . . . . 450,000
e.
Equipment (old van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,000
Cash . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
Equipment (new van) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000
Accumulated Depreciation (old van) . . . . . . . . . .. . . . . . . . . . . . . . . . 450,000
114. Under U.S. GAAP and IFRS reporting standards, management assesses the firm’s assets for impairment at each reporting date by determining if impairment indicators are present. Impairment indicators include
a.
the decline in the market value of an asset significantly beyond what would be expected because of use or the passage of time.
b.
significant adverse changes in the entity’s technological environment.
c.
significant adverse changes in the entity’s economic environment.
d.
significant adverse changes in the entity’s legal environment.
e.
all of the above
130. An impairment loss on a trademark arises when
a.
the book value of the trademark exceeds the undiscounted cash flows.
b.
the book value of the trademark exceeds the market value.
c.
the market value of the trademark exceeds the undiscounted cash flows.
d.
the book value of the trademark exceeds the discounted cash flows.
e.
the book value of the trademark exceeds the net realizable value.
a.
$240,000
b.
$300,000
c.
$320,000
d.
$340,000
e.
$360,000
Explanation / Answer
35) option b) is right. $ 300000
58) option a.) Is correct , brand names
95) option a) is correct
98) option b) is correct
99) option a) is correct
100) option a) is correct
101) option a) is correct
104) option b) is correct
110) option a) is correct
114) option a) is correct
130) option b) is correct
Thank you