1. The seductiveness upon the $50,000 note during 9% for 4 months is?
2. Equipment is sole for $20,000 cash. The matter of money flows will inform a:
A. $20,000 money outflow in the investing activities territory
B. $20,000 money influx in the financing activities territory
C. $20,000 influx in the investing activities territory
D. $20,000 influx in the handling activities section
3. Land, buildings, as well as apparatus have been acquired for the pile sum of $900,000. The marketplace values of the 3 resources have been respectively, $200,000, $500,000, as well as $300,000. What is the price reserved to the building?
4. A plant item is acquired by the commercial operation upon Jan 1, 2001, for $10,000. The asset’s estimated residual worth is $2,000 as well as the estimated hold up is 5 years. Management chooses to use straight-line depreciation. On Jan 1, 2002, government revises the sum utilitarian hold up to 6 years as well as the residual worth to be zero. Compute the change in amassed debasement upon Dec 31, 2002?
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1. The interest on a $50,000 note at 9% for 4 months is?
50,000 x 0.09 x 4/12 = $1,500
2. Equipment is sold for $20,000 cash. The statement of cash flows will report a:
C. $20,000 inflow in the investing activities section
3. Land, buildings, and equipment are acquired for a lump sum of $900,000. The market values of the three assets are respectively, $200,000, $500,000, and $300,000. What is the cost assigned to the building?
500,000/1,000,000 x 900,000 = $450,000
4. A plant asset is acquired by a business on January 1, 2001, for $10,000. The asset’s estimated residual value is $2,000 and its estimated life is 5 years. Management chooses to use straight-line depreciation.
Depn for 2001 = (10,000 – 2,000)/5 = $1,600
Nbv at end 2001 = $8,400
On January 1, 2002, management revises the total useful life to 6 years and the residual value to be zero. Compute the balance in accumulated depreciation on December 31, 2002?
Total useful life is upped to 6 yrs but 1 yr has passed, so 5 more yrs going forward.
Depn for 2002 = $8,400/5 = $1,680
Accum depn at Dec 31, 2002 = $1,600 + $1,680 = $3,280.