1/ Short Corporation acquired Hathaway, Inc., for $43,600,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $38,000,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?
Multiple Choice
$1,400,000.
$0.
$2,800,000.
$5,600,000.
2/ Nanki Corporation purchased equipment on January 1, 2016, for $657,000. In 2016 and 2017, Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $13,000 residual value. In 2018, due to changes in technology, Nanki revised the useful life to a total of 4 years with no residual value. What depreciation would Nanki record for the year 2018 on this equipment? (Round your answer to the nearest dollar amount.)
Multiple Choice
$107,333.
$105,882.
$248,000.
None of these answer choices are correct.
3/ Cutter Enterprises purchased equipment for $78,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $6,900.
Using the double-declining balance method, the book value at
December 31, 2019, would be:
Multiple Choice
$29,280.
$15,600.
$28,080.
$27,180.
21/ On March 31, 2018, M. Belotti purchased the right to remove gravel from an old rock quarry. The gravel is to be sold as roadbed for highway construction. The cost of the quarry rights was $174,300, with estimated salable rock of 21,000 tons. During 2018, Belotti loaded and sold 5,000 tons of rock and estimated that 16,000 tons remained at December 31, 2018. At January 1, 2019, Belotti estimated that 15,000 tons still remained. During 2019, Belotti loaded and sold 10,000 tons. Belotti uses the units-of-production method.
Belotti would record depletion in 2019 of: (Round cost per
ton to two decimal places.)
Multiple Choice
$88,500.
$90,700.
$101,620.
$91,780.
In: Accounting
n 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,044,000 | $ | 2,628,000 | $ | 2,890,800 | |||
| Estimated costs to complete as of year-end | 5,256,000 | 2,628,000 | 0 | ||||||
| Billings during the year | 2,170,000 | 2,502,000 | 5,328,000 | ||||||
| Cash collections during the year | 1,885,000 | 2,600,000 | 5,515,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary
journal entries for the year 2018 (credit "Various accounts" for
construction costs incurred).
2-b. In the journal below, complete the necessary
journal entries for the year 2019 (credit "Various accounts" for
construction costs incurred).
2-c. In the journal below, complete the necessary
journal entries for the year 2020 (credit "Various accounts" for
construction costs incurred).
3. Complete the information required below to
prepare a partial balance sheet for 2018 and 2019 showing any items
related to the contract.
4. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete
information.
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,044,000 | $ | 3,885,000 | $ | 3,285,000 | |||
| Estimated costs to complete as of year-end | 5,256,000 | 3,185,000 | 0 | ||||||
5. Calculate the amount of revenue and gross
profit (loss) to be recognized in each of the three years assuming
the following costs incurred and costs to complete
information.
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,044,000 | $ | 3,885,000 | $ | 4,155,000 | |||
| Estimated costs to complete as of year-end | |||||||||
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
|
In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record construction costs. / 2. Record progress billings. / 3. Record cash collections. / 4. Record gross profit (loss)
In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2018: 1. Record construction costs. / 2. Record progress billings. / 3. Record cash collections. / 4. Record gross profit (loss).
In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record construction costs. / 2. Record progress billings. / 3. Record cash collections. / 4. Record gross profit (loss).
Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)
|
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