Question :
15. Comptel Corporation purchased land, a building and equipment for : 1370094
15. Comptel Corporation purchased land, a building and equipment for a total cost of $525,000. The appraised values of the land, building and equipment were $150,000, $375,000 and $75,000, respectively. The purchase price allocated to the land should be:
A)$525,000
B)$150,000
C)$131,250
D)$ 65,625
16. Comptel Corporation purchased land, a building and equipment for a total cost of $525,000. The appraised values of the land, building and equipment were $150,000, $375,000 and $75,000, respectively. The purchase price allocated to the building should be:
A)$131,250
B)$328,125
C)$375,000
D)$428,571
17. Comptel Corporation purchased land, a building and equipment for a total cost of $525,000. The appraised values of the land, building and equipment were $150,000, $375,000 and $75,000, respectively. The purchase price allocated to the equipment should be:
A)$ 65,625
B)$ 75,000
C)$131,250
D)$150,000
18. Affiliated Industries purchased a piece of equipment for $5,500, FOB shipping point. The company paid freight of $225 and installation costs of $485. During installation, the equipment was damaged requiring $195 in repair costs. The total cost assigned to the equipment should be:
A)$5,500
B)$5,725
C)$6,210
D)$6,405
19. To calculate depreciation, all of the following must be determined except:
A)useful life of the asset
B)salvage value of the asset
C)acquisition cost of the asset
D)fair market value of the asset
20. All of the following are based on estimates except:
A)useful life
B)salvage value
C)acquisition cost
D)depreciable cost
21. Carlton Company acquired a tract of land on June 30, 2008. The total cost of the land was $90,000. Carlton estimated that the land would be used for 10 years and then sold. Assuming the company uses straight-line depreciation, the total depreciation taken on the land for the year ended December 31, 2003should be:
A)amount cannot be determined without additional information
B)$ 9,000
C)$ 4,500
D)$ 0
22.On January 1, 2010, Boyd Corporation purchased a piece of equipment for $50,000, will pay $1,500 in property tax during the year, paid $500 to have it delivered, paid $1,000 to have it installed, paid $300 for 1 year of insurance, and paid $1,800 in sales tax. If the equipment has a ten year life and a $2,000 salvage value what will be the depreciation of the equipment for 2010 if straight-line depreciation is used.
A) $4,800
B) $5,330
C) $5,130
D) $5,150
23. Ivanhoe Enterprises acquired a piece of equipment on January 3, 2010. The total cost of the equipment was $35,000. Ivanhoe estimated that the equipment would be used for 8 years before being sold for an estimated $7,000. Assuming the use of straight-line depreciation, the total depreciation expense for the year ended December 31, 2010 was:
A)$3,500
B)$4,000
C)$4,375
D)$5,250
24. Byrons, Inc. acquired a piece of equipment on January 3, 2010. The total cost of the equipment was $28,500. Byrons estimated that the equipment would be used for 6 years before being sold for an estimated $4,500. Assuming the use of straight-line depreciation, the total depreciation expense for the year ended December 31, 2010 was:
A)$ 4,000
B)$ 4,750
C)$ 5,500
D)$20,000
