Select the best answer for each of the following Review Ouiz-Segment 4 (3700) 1 Hickory Company made a lump-sum purchase of three pieces ot machinery tor s130,000 from an unatttsd company. At the time of acquisition, Hickory paid $5,000 to determine the appraised value of the machinory The appraisal disclosed the following values Machine A Machine B Machine C A i30000 S & (130000 C isous S $70,000 $42,000 $28,000 0 20u va What cost should be assigned to Machines A, B, and C, respectively? 94ch A $45,000 $45,000 $45,000 b $65,000 $67,500 $70,000 $39,000 $26,000 $27,000 C. $40,500 $42,000 $28,000 2. A donated plant asset should be recorded at an amount equal to its: historical cost Tair value a. C. book value on books of donor CORRIES consicos d. historical cost or fair value, whichever is more clearly determinable a tnepent Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,000 at the 3. end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of $1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of $1 at 15% for 5 periods is 6.74. The present value of $1 at 15% for 5 periods is 0.5 How much should Electro record as the cost of the machine? $12,500 $16,750 a. b. $25,000 $33,700 С. d. When a company purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the costs incurred to tear down the building should be 4. a. expensed as incurred d to the cost of the plant down of the building and the co
Select the best answer for each of the following Review Ouiz-Segment 4 (3700) 1 Hickory Company made a lump-sum purchase of three pieces ot machinery tor s130,000 from an unatttsd company. At the time of acquisition, Hickory paid $5,000 to determine the appraised value of the machinory The appraisal disclosed the following values Machine A Machine B Machine C A i30000 S & (130000 C isous S $70,000 $42,000 $28,000 0 20u va What cost should be assigned to Machines A, B, and C, respectively? 94ch A $45,000 $45,000 $45,000 b $65,000 $67,500 $70,000 $39,000 $26,000 $27,000 C. $40,500 $42,000 $28,000 2. A donated plant asset should be recorded at an amount equal to its: historical cost Tair value a. C. book value on books of donor CORRIES consicos d. historical cost or fair value, whichever is more clearly determinable a tnepent Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,000 at the 3. end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary annuity of $1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of $1 at 15% for 5 periods is 6.74. The present value of $1 at 15% for 5 periods is 0.5 How much should Electro record as the cost of the machine? $12,500 $16,750 a. b. $25,000 $33,700 С. d. When a company purchases land with a building on it and immediately tears down the building so that the land can be used for the construction of a plant, the costs incurred to tear down the building should be 4. a. expensed as incurred d to the cost of the plant down of the building and the co
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Select the best answer for each of the following
Review Ouiz-Segment 4 (3700)
1
Hickory Company made a lump-sum purchase of three pieces ot machinery tor s130,000 from an unatttsd
company. At the time of acquisition, Hickory paid $5,000 to determine the appraised value of the machinory The
appraisal disclosed the following values
Machine A
Machine B
Machine C
A
i30000 S
& (130000
C isous S
$70,000
$42,000
$28,000
0 20u va
What cost should be assigned to Machines A, B, and C, respectively?
94ch
A
$45,000
$45,000
$45,000
b
$65,000
$67,500
$70,000
$39,000
$26,000
$27,000
C.
$40,500
$42,000
$28,000
2.
A donated plant asset should be recorded at an amount equal to its:
historical cost
Tair value
a.
C.
book value on books of donor
CORRIES
consicos
d.
historical cost or fair value, whichever is more clearly determinable
a tnepent
Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,000 at the
3.
end of each of the next 5 years. Assume a prevailing interest rate of 15%. The present value of an ordinary
annuity of $1 at 15% for 5 periods is 3.35. The future amount of an ordinary annuity of $1 at 15% for 5 periods is
6.74. The present value of $1 at 15% for 5 periods is 0.5
How much should Electro record as the cost of the machine?
$12,500
$16,750
a.
b.
$25,000
$33,700
С.
d.
When a company purchases land with a building on it and immediately tears down the building so that the land
can be used for the construction of a plant, the costs incurred to tear down the building should be
4.
a. expensed as incurred
d to the cost of the plant
down of the building and the co
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