SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. To the nearest dollar, the value of the land to be recorded in the books should be Multiple Choice   $34,783   $36,364   $40,000   $48,696

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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5 Part Question:

SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. To the nearest dollar, the value of the land to be recorded in the books should be

Multiple Choice

  •  
    $34,783
  •  
    $36,364
  •  
    $40,000
  •  
    $48,696
  •  
    $56,522

 

SportsWorld paid $140,000 for a property. The property included land appraised at $67,500, land improvements appraised at $25,000, and a building appraised at $55,500. What should be the allocation of costs in the accounting records (round calculations to 3 decimals)?

Multiple Choice
  •  
    Land $62,000; land improvements, $23,000; building, $45,000
  •  
    Land $63,840; land improvements, $23,660; building, $52,500
  •  
    Land $87,500; land improvements; $35,000; building; $52,500
  •  
    Land $79,500; land improvements, $32,600; building, $47,700
  •  
    Land $62,000; land improvements, $23,800; building, $46,200

 

SportsWorld bought a new display case for $12,000 and was given a trade-in of $2,000 on an old display case. The old case had an original cost of $7,000 and accumulated depreciation of $4,000 to the date of trade-in. SportsWorld should record the new display case at:

Multiple Choice
  •  
    $10,500
  •  
    $11,700
  •  
    $11,500
  •  
    $12,000
  •  
    $10,000

 

SportsWorld uses straight-line depreciation for a piece of equipment that cost $12,000, had a trade-in value of $2,000, and a five-year service life. At the end of the third year, the trade-in value was revised to $1,200 and the useful life increased to a total of 6 years. Calculate the amount of depreciation expense for each of the remaining years of the asset's useful life.

Multiple Choice
  •  
    $1,000
  •  
    $2,160
  •  
    $1,600
  •  
    $1,800
  •  
    $1,467

 

At the end of the year, SportsWorld completed an asset impairment test and noted that a piece of equipment, with a book value of 12,000, has a recoverable value of $2,000. Calculate the amount of impairment loss on the equipment.

Multiple Choice
  •  
    $14,800
  •  
    $2,000
  •  
    $10,000
  •  
    $12,800
  •  
    $2,160
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