Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 22, Problem 22.5MC
To determine
To identify: The correct option
Given information:
Net fixed assets are $107,000 and $87,000 for the year 11 and 10 respectively.
Purchase of fixed assets is $50,000.
Sale of fixed assets is $10,000.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Account
MNO Corporation had the following information regarding its fixed assets:
Beginning of the year: $500,000Additions during the year: $100,000Disposals during the year: $50,000Accumulated depreciation at the beginning of the year: $200,000Depreciation expense for the year: $50,000Calculate the net book value of fixed assets at the end of the year.
Select financial statement data for two recent years for Davenport Company are as follows:
Line Item Description
20Y5
20Y4
Sales
$2,011,500
$1,088,000
Fixed assets:
Beginning of year
720,000
640,000
End of year
770,000
720,000
a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round your answers to one decimal place.
Line Item Description
20Y5
20Y4
Fixed Asset Turnover Ratio
fill in the blank 1 of 2
fill in the blank 2 of 2
Extracts from Tom Ltd's Statement of financial positions are given below:
At year-
end
At
beginning
of year
£'000
£'000
Non-current assets
295
240
Accumulated depreciation 150
105
Net book value
145
135
Assuming there were no disposals within the year, which of the following statements
is true?
Select one:
OA. During the year, the amount spent on the purchase of non-current assets was
£295,000 and the depreciation charge for the year was £150,000.
OB. During the year, the amount spent on the purchase of non-current assets was
£55,000 and the depreciation charge for the year was £150,000.
OC. During the year, the amount spent on the purchase of non-current asset
purchases was £55,000 and the depreciation charge for the year was
£45,000.
OD. During the year, the amount spent on the purchase of non-current assets was
£295,000 and the depreciation charge for the year was £45,000.
Chapter 22 Solutions
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Statement of Cash Flows, Indirect Method,...Ch. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Prob. 22.14PCh. 22 - Prob. 1JCCh. 22 - Prob. 1FSACCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000arrow_forwardThe net income reported on the income statement for the current year was $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $50,000 S60,000 Accounts Receivable 112,000 108,000 Inventories 105,000 93,000 Prepaid Expenses 4,500 6,500 Accounts Payable (merchandise creditors) 75,000 89,000 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? O a. $198,000 Ob. $296,000 O c. $324,000 O d. $352,000arrow_forwardKerch Co. had beginning net fixed assets of $216,558, ending net fixed assets of $211,722, and depreciation of $40,471. During the year, the company sold fixed assets with a book value of $8,038. How much did the company purchase in new fixed assets? Multiple Choice $43,673 $41,510 $35,635 $32,433 $34,327arrow_forward
- Extract from the statement of P&L and OCI of Don Ltd for year ended 30 June 20X8 and the Balance Sheet at 30 June 20X7 and 20X8 are given below. 20X7 20X8 Sales $2,120,000 Interest revenue $3,000 Loss on sale of plant and equipment ($25,000) Current Assets Interest receivable $1,500 $3,000 Non-current assets Plant and equipment (at cost) $410,000 $425,000 (-) Accumulated depreciation ($85,000) ($102,000) Loan to CEO $60,000 $45,000 Current liabilities Trade Payables $14,200 $34,250 Additional information: On 1 January 20X8 Don Ltd sold plant and equipment with a carrying amount of $75,000 (cost $100,000) and received $50,000 cash. An item of plant and equipment was purchased on 29 June 20X8. Not all of this was paid for with cash. $30,000 of this amount was purchased on credit and is in the trade payables balance at 30 June 20X8. Don Ltd…arrow_forwardThe net income reported on the income statement for the current year was $295,300. Depreciation recorded on fixed assets and amortization of patents for the year were $40,200 and $5,300, respectively. Balances of current asset and current liability accounts at the end and beginning of the year are as follows: End Beginning Cash $50,300 $60,300 Accounts receivable 112,100 108,100 Inventories 105,300 93,300 Prepaid expenses 4,600 6,800 Accounts payable (merchandise creditors) 75,100 89,300 What amount of cash flows from (used for) operating activities is reported on the statement of cash flows prepared by the indirect method? a.$302,800 b.$207,400 c.$312,800 d.$369,000arrow_forwardOn 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation, the asset had been accounted for at a cost of $160,000, and had accumulated depreciation $40,000. The property had an expected useful life of fifty years from the date of purchase and nil residual value. State the accounting entries required to account for the revaluation in the financial statements of Hendrix Co. Debit or Credit Account title $arrow_forward
- an assets book value is 19,400 on Dec 31, year 5. The asset has been depreciated at an annual rate of 4,400 on the straight-line method. assuming the asset is sold on Dec 31 year 5 for 16,400 the company should record?arrow_forwardFixed asset turnover ratio Select financial statement data for two recent years for Davenport Company are as follows: 20Y5 20Υ4 Sales $1,668,000 $1,125,000 Fixed assets: Beginning of year 670,000 580,000 End of year 720,000 670,000 a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.arrow_forwardCrossroads Eye Care Company purchased $122,200 of equipment on March 1, Year 1. 5-Year Property, 7-Year Property, Year 1 5678AWN2 3 4 % 20.00 32.00 19.20 11.52 11.52 5.76 Required a. Compute the amount of depreciation expense that is deductible under MACRS for Year 1 and Year 2, assuming that the equipment is classified as a seven-year property. b. Compute the amount of depreciation expense that is deductible under MACRS for Year 1 and Year 2, assuming that the equipment is classified as a five-year property. Complete this question by entering your answers in the tabs below. Required A Required B % 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 Year 1 Year 2 Compute the amount of depreciation expense that is deductible under MACRS for Year 1 and Year 2, assuming that the equipment is classified as a seven-year property. (Round your answers to the nearest whole dollar amount.) Depreciation Expensearrow_forward
- The next four items are based on the following information: Dirt Corporation schedule of depreciable assets at December 31, 20X7 was as follows: Ассит. Acquisition date Depreciation 64,000 36,000 33,600 Asset Cost Residual value А 100,000 55,000 70,000 20X6 20,000 10,000 В 20X5 C 20X5 14,000 Dirt takes a full year's depreciation expense in the year of an asset's acquisition, and no depreciation expense in the year of an asseť's disposition. The estimated useful life of each depreciable asset is 5 years. 2. Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X8 for asset A? 3. Dirt depreciates asset A on the double-declining-balance method. How much depreciation expense should Dirt record in 20X9 for asset A? 4. Using the same depreciation method as used in 20X5, 20X6, and 20X7, how much depreciation expense should Dirt record in 20X8 for asset B? 5. Dirt depreciates asset C by the straight-line method. On June 30, 20X8,…arrow_forwardEntries for Sale of Fixed Asset Equipment acquired on January 8 at a cost of $145,100, has an estimated useful life of 15 years, has an estimated residual value of $9,800, and is depreciated by the straight-line method. a. What was the book value of the equipment at December 31 the end of the fourth year? $ 9,020 X Book value is the initial cost of the fixed asset minus the accumulated depreciation. b. Assuming that the equipment was sold on April 1 of the fifth year for 100,745. 1. Journalize the entry to record depreciation for the three months until the salle date. Round your answers to the nerest whole dollar if required. The depreciation account of the fixed asset being sold or discarded needs to be updated to reflect the months of use in the year it is being discarded or sold. The straight-line method of depreciation calculates the amount of depreciation to be recognized each year. 2. Journalize the entry to record the sale of the equipment. If an amount box does not require an…arrow_forwardDuring the year, Davis Company sold equipment with a book value of $280,000 for $400,000 (original purchase cost of $480,000). New equipment was purchased. Davis provided the following comparative balance sheets: Davis Company Comparative Balance Sheets At December 31, 20X1 and 20X2 Line Item Description 20X1 20X2 Long-Term Assets: Plant and equipment $2,200,000 $2,130,000 Accumulated depreciation (1,200,000) (1,270,000) Land 1,000,000 1,442,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Required: Calculate the investing cash flows for the current year. Use a minus sign to indicate a cash outflow. fill in the blank 1 of 1$ Check My Work2 more Check My Work uses remaining.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY