Question Accounting Quiz Assignment | Homework Help Websites
Question 1 (10 points)
Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:
| PP&E Element | Amount |
| Land | $15,000 |
| Building | 25,000 |
| Equipment | 40,000 |
Bowie paid $65,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.)
Your Answer:
Question 2 (10 points)
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $21,000 for the truck. The truck is expected to have a $2,500 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Hint: what is the year 2 depreciation amount?
Your Answer:
Question 3 (10 points)
Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $22,000 for the truck. The truck is expected to have a $3,000 residual value and a 5-year life. Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.)
Your Answer:
Question 4 (10 points)
Somerset Company acquired a piece of equipment with a list price of $200,000 for $150,000. Freight to Somerset’s location was $10,000. Installation and testing costs were $5,500. An old piece of equipment was scrapped as a result of this new purchase. The old piece of equipment had an undepreciated value (net book value) of $8,000. The new piece of equipment is expected to have a 10 year life and a salvage value of $15,000. What is the total value assigned to the new piece of equipment? Get accounting homework help today.
