ACCT 370 Connect Smartbook Assignment 11 solutions complete answers and more!

ACCT 370 Connect Smartbook Assignment 11 solutions complete answers and more!

 

Renaldo Corporation purchased a piece of equipment for $21,000. The asset has a useful life of 5 years and a $1,000 salvage value. The asset will be used to produce a total of 10,000 units. Production for the current year was 3,500 units. Depreciation using the straight-line method for the current year is

 

The             for a manufacturer begins with the receipt of raw materials inventory and ends when the cash is received for the completed product that has been sold.

 

Discounted present value and cash inflow that an asset would bring if it were sold instead of being used in operations are examples of an

 

The amount that would be received if the assets were sold in the used asset market is the net            .

 

Meyer Corporation has a two-year old truck that originally cost $80,000, has a remaining life of 8 years with no salvage value, and is depreciated using the straight-line method. Current resale of the truck is $65,000. Expected net operating cash inflows are $14,250 and a 10% rate is used. Identify the correct statement.

 

The two rules that govern the initial balance sheet carrying amount of a long-lived asset include

 

Bax Industries has an inventory turnover of 60 days and an average receivables collection period of 45 days. What is Bax's operating cycle?

 

Interest that could have been averted if expenditures for the assets had not been made is known as       interest.

 

Identify the correct statement regarding long-lived assets.

 

Hometown Village Construction Company had the following expenditures during the current year. On May 1, they paid $7,500,000 and on September 15, they paid $4,250,000. Using the number of days, calculate the interest for the year assuming a 10% rate.

 

The dominant GAAP measurement method for measuring long-lived assets is the

 

GAAP limits the amount of interest that can be capitalized to the lower of which of the following two?

 

Meyer Corporation has a two-year old truck that originally cost $80,000, has a remaining life of 8 years with no salvage value, and is depreciated using the straight-line method. Current resale of the truck is $65,000. Net realizable value of the truck is

 

Which of the following are true statements?

 

Costs that are necessary to acquire the asset and make it ready for use are called       costs.

 

When a long-lived asset expenditure doesn't meet the capitalization criteria, it must be treated as a period       and be charged to income.

 

Identify the correct statement regarding the treatment of interest in measuring long-lived assets.

 

Which of the following statements are true regarding costs?

 

Hometown Village Construction Company had the following expenditures during the current year. On May 1, they paid $7,500,000 and on September 15, they paid $4,250,000. Using the number of days, calculate the cumulative weighted average expenditures for the year

 

Examples of intangible assets include

 

True or false: Capitalization is restricted to interest that arises from actual borrowings from outsiders.

 

Which of the following represents the difference between the total fair value of an acquired business and the fair value of its identifiable net assets?

 

Identify the correct statement.

 

The amount of the write-down that must be recognized due to an impairment loss is the difference between

 

Which of the following conditions would result in the capitalization of expenditures on long-lived assets?

 

True or false: Under GAAP, if an asset is written down, it can later be written back up.

 

Which of the following is not a criteria required for costs to be capitalized?

 

Identify the correct statement regarding indefinite-lived intangible assets.

 

Long-lived assets that do not have physical substance are       assets.

 

Riley Corporation reports the following information regarding assets held for sale. Book value of the assets is $450,000, fair value of the assets is $325,000, and expected costs to sell the assets is $25,000. These assets would be shown on the balance sheet at

 

Intangible assets that have indefinite lives

 

The systematic expensing and write-down of a tangible long-lived assets is known as

 

Rank the following stages from first to last in determining an impairment loss.

 

Which of the following is not a required estimate needed to compute depreciation?

 

Once an impairment loss has been recognized on an asset,

 

Which of the following are true of impairment evaluation for indefinite-lived intangible assets?

 

Renaldo Corporation purchased a piece of equipment for $21,000. The asset has a useful life of 5 years and a $1,000 salvage value. The asset will be used to produce a total of 10,000 units. Production for the current year was 3,500 units. Depreciation is $7,000. Depreciation has been determined using the

 

Identify the correct statement regarding assets held for sale.

 

Baxter Company sold equipment for $6,000. The equipment originally cost $10,000, had a salvage value of $2,000 and a useful life of 5 years, and had a book value of $5,200 on the date it was sold. The journal entry to record the sale of the truck would include which of the following?

 

Identify the correct statement regarding the depreciation process.

 

Computing depreciation requires the reporting entity to estimate

 

Blue Corporation exchanges a delivery truck with a fair value of $50,000 for a piece of equipment from Red Corporation. The truck's book value is $40,000, which is the original cost of $60,000 minus accumulated depreciation of $20,000. In addition to the truck, Blue pays Red $7,500. The journal entry to record the sale would include

 

Green agrees to exchange a delivery truck with a book value of $60,000 for a different delivery truck owned by White Corporation. The original cost of Green's delivery truck was $80,000 and accumulated depreciation is $20,000 Green also pays $10,000 to complete the transaction. It is not possible to measure the fair value of either truck. Identify the correct statement.

 

Renaldo Corporation purchased a piece of equipment for $21,000. The asset has a useful life of 5 years and a $1,000 salvage value. The asset will be used to produce 10,000 units. Double-declining balance depreciation for the second year is

 

To preclude firms from generating artificial gains on exchange transactions being recorded at fair value, U.S. GAAP requires that the transaction

 

Prince Corporation sells a truck for $8,500 after it had been used for 3 years. The truck was purchased for $17,000, had a useful life of 5 years, and had a $2,000 salvage value. The journal entry to record the sale of the truck would include

 

When assets are exchanged to balance inventories,

 

Blue Corporation exchanges a delivery truck with a fair value of $50,000 for a piece of equipment from Red Corporation. The truck's book value is $40,000, which is the original cost of $60,000 minus accumulated depreciation of $20,000. In addition to the truck, Blue pays Red $7,500. The cost of the equipment is

 

In an exchange of nonmonetary assets when the fair value of the exchanged assets cannot be determined,

 

An exchange has             when the firm's future cash flow are expected to change significantly as a result of the exchange.

 

Sterling Corporation faced a shortage of cherry bookcases but had an excess of mahogany bookcases. Sterling agrees to exchange cherry bookcases with a fair value of $10,000 and a book value of $9,000 for mahogany bookcases with a fair value of $10,500 from Princess Industries. Which of the following would be included in the journal entry to record this exchange?

 

The allocation of costs to periods for intangible assets is referred to as

 

Costs incurred in acquiring more than one asset that are apportioned among the acquiring assets are known as       costs.