1.
Question :
Renault Marina exchanged a boat with a cost of $80,000 (now 75% depreciated) for another boat with a current fair value of $27,000. No boat was paid for or received. The new boat will perform the exact same function as the old boat. Renault should record the new boat at
Student Answer:
$20,000
$27,000
$7,000
$0
Points Received:
2 of 2
Comments:
2.
Question :
The sale of a depreciable asset resulting in a gain indicates that the proceeds from the sale were
Student Answer:
less than current market value
greater than cost
greater than book value
less than book value
Points Received:
2 of 2
Comments:
3.
Question :
Robards Services exchanged an asset with a cost of $24,000 (now 40% depreciated) for a nonmonetary asset worth $12,000. Robards received $2,000 boot. In the entry to record this exchange, Robards should record
Student Answer:
a $10,000 loss
a $400 gain
no gain or loss
a $400 loss
Points Received:
2 of 2
Comments:
4.
Question :
Remy purchases a new machine by issuing an $18,000 three-year note. The company will pay off the obligation by paying $6,000 at the end of each year. The market rate for obligations of this type is 8%. The present value of an annuity at 8% for three periods is 2.577097. The machine will be recorded at a cost of
Student Answer:
$ 6,000.00
$ 9,462.58
$15,462.58
$18,000.00
Points Received:
0 of 2
Comments:
5.
Question :
According to GAAP, interest must be capitalized for
Student Answer:
assets that are ready for use
assets constructed for a firm's own use
assets that are not being used in the earning activities of the company
inventories that are produced in large quantities on a repetitive basis
Points Received:
0 of 2
Comments:
6.
Question :
Macey Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck with a current appraised value of $13,000. Macey Co. gave the other company the piece of equipment and $8,000. Macey Co. should record
Student Answer:
a $5,000 loss
the truck at $18,000
a gain of $11,000
the truck at $21,000
Points Received:
0 of 2
Comments:
7.
Question :
Early in 2010, Roper, Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $50,000 at year-end for each of the next three years. The plant assets should be valued at
Student Answer:
present value of a $50,000 annuity for three years discounted at the bank prime interest rate
$150,000
present value of a $50,000 annuity for three years discounted at the market interest rate
$150,000 plus imputed interest
Points Received:
0 of 2
Comments:
8.
Question :
On May 15, 2010, Retread Company acquired a new forklift in exchange for an old forklift that it had acquired in 2000. The old forklift was purchased for $20,000 and had a book value of $5,000. On the date of the exchange, the old fork.
1.Question Renault Marina exchanged a boat with a cost of $8.docx
1. 1.
Question :
Renault Marina exchanged a boat with a cost of $80,000 (now
75% depreciated) for another boat with a current fair value of
$27,000. No boat was paid for or received. The new boat will
perform the exact same function as the old boat. Renault should
record the new boat at
Student Answer:
$20,000
$27,000
$7,000
$0
Points Received:
2 of 2
Comments:
2. 2.
Question :
The sale of a depreciable asset resulting in a gain indicates that
the proceeds from the sale were
Student Answer:
less than current market value
greater than cost
greater than book value
less than book value
Points Received:
2 of 2
Comments:
3.
Question :
Robards Services exchanged an asset with a cost of $24,000
3. (now 40% depreciated) for a nonmonetary asset worth $12,000.
Robards received $2,000 boot. In the entry to record this
exchange, Robards should record
Student Answer:
a $10,000 loss
a $400 gain
no gain or loss
a $400 loss
Points Received:
2 of 2
Comments:
4.
Question :
Remy purchases a new machine by issuing an $18,000 three-
year note. The company will pay off the obligation by paying
$6,000 at the end of each year. The market rate for obligations
4. of this type is 8%. The present value of an annuity at 8% for
three periods is 2.577097. The machine will be recorded at a
cost of
Student Answer:
$ 6,000.00
$ 9,462.58
$15,462.58
$18,000.00
Points Received:
0 of 2
Comments:
5.
Question :
According to GAAP, interest must be capitalized for
5. Student Answer:
assets that are ready for use
assets constructed for a firm's own use
assets that are not being used in the earning activities of the
company
inventories that are produced in large quantities on a repetitive
basis
Points Received:
0 of 2
Comments:
6.
Question :
Macey Co. exchanged a piece of equipment that had cost
$40,000 (now 75% depreciated) for a truck with a current
appraised value of $13,000. Macey Co. gave the other company
the piece of equipment and $8,000. Macey Co. should record
6. Student Answer:
a $5,000 loss
the truck at $18,000
a gain of $11,000
the truck at $21,000
Points Received:
0 of 2
Comments:
7.
Question :
Early in 2010, Roper, Inc. purchased certain plant assets under a
deferred payment contract. The agreement was to pay $50,000
at year-end for each of the next three years. The plant assets
should be valued at
Student Answer:
7. present value of a $50,000 annuity for three years discounted at
the bank prime interest rate
$150,000
present value of a $50,000 annuity for three years discounted at
the market interest rate
$150,000 plus imputed interest
Points Received:
0 of 2
Comments:
8.
Question :
On May 15, 2010, Retread Company acquired a new forklift in
exchange for an old forklift that it had acquired in 2000. The
old forklift was purchased for $20,000 and had a book value of
$5,000. On the date of the exchange, the old forklift had a
market value of $6,000. In addition, Retread paid $18,000 cash
for the new forklift, which had a list price of $25,000. At what
amount should Retread record the new forklift for financial
accounting purposes?
9. the full-cost method
both the successful-efforts method and the full-cost method
neither the successful-efforts method nor the full-cost method
Points Received:
2 of 2
Comments:
10.
Question :
All of the following would be classified as property, plant, and
equipment except
Student Answer:
office buildings
machinery owned for standby purposes
10. equipment held for resale
equipment used in the operation of the business
True
0
1719577666
MultipleChoice
16
1719577667
MultipleChoice
24
True
0
1719577667
MultipleChoice
24
