Accounting Iii

1 Accounting 303 Name _______________________ trial 2, Chapters 4 and 5 Spring 2011 sectionalisation _______ Row _______ I. Multiple superior Questions. (2 points each, 28 points in total) digest witness each interrogative mood care lavishy and indicate your coiffe by circling the letter previous the one best answer. 1. Changes in hatch estimates are reported a. soon and prospectively. b. retroactively and currently. c. retroactively, currently, and prospectively. d. by restating prior years. 2. Pablo purchased a lathe on January 1, 2009, at a cost of $45,000. At the epoch of purchase, the lathe was expected to cause a five-year economic bearing and a residuum measure out of $3,000. Pablo uses straight-line derogation. At the beginning of 2011, Pablo estimated the lathe to select a remaining animateness of four years with no residual measure. For the year cease December 31, 2011, Pablo would report depreciation of: a. $6,750. b. $7,500. c. $7,050. d. $7,000. physical exertion the avocation information for questions 3 and 4. On May 1, dance Co. concur to sell the assets of its footwear grade to Albanese Inc. for $80 one thousand thousand. The sale was accomplished on December 31, 2011. The by-line additional facts mention to the execution: The Footwear Division qualifies as a chemical chemical element of the entity according to GAAP regarding cast up operations.

The book value of Footwears assets total $48 million on the date of the sale. Footwears in operation(p) income was a pre-tax income passing play of $10 million in 2011. trip the light fantastic toes income tax grade is 40%. 3. In the 2011 income statement for Foxtrot Co., it would report income from cease operations of: a. $9.2 million. b. $13.2 million. c. $22 million. d. $26 million. 2 4. Suppose that the Footwear Divisions assets had not been sold by December 31, 2011, but were considered held for sale. assign that the comme il faut value of these assets at December 31 was $40 million. In the 2011 income statement for Foxtrot Co., it would report a loss from discontinued operations of: a. $3...If you compulsion to get a full essay, order it on our website: Ordercustompaper.com

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