Author: Anonymous

Dak uses the LIFO method to cost inventory. What amount should Dak report as inventory on January 31 under each of the following methods of recording inventory? Units Unit cost Total cost Units on hand Balance on 1/1 6,000 $2 12,000 6,000 Purchased on 1/8 1,500 3 4,500 7,500 Sold on 1/23 5,000 2,500 Purchased on 1/28 3000 6 18,000 5,500 Answer format: [Perpetual      Periodic]

Office furniture cost $948,000 on July 1, 2020. Its estimated salvage value is $87,200 and its expected life is 5 years. Calculate the depreciation expense by straight-line for 2020. (Round answer to 0 decimal places, e.g. 5,275. Do NOT use a dollar sign in your answer.) $ [SL]   Calculate the depreciation expense by double-declining balance for 2021. (Round answer to 0 decimal places, e.g. 5,275. Do NOT use a dollar sign in your answer.) $ [DDB]   Calculate the depreciation expense by sum-of-the-years’-digits for 2021. ((Round answer to 0 decimal places, e.g. 5,275. Do NOT use a dollar sign in your answer.) $[SYD]   Which depreciation method results in the smallest income amount for 2021? Use SL for straight line, DDB for double-declining balance, and SYD for sum-of-the-years’-digits. [method]

Perry Corp. acquired a tract of land containing an extractable natural resource. Perry is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 3,180,000 tons, and that the land will have a value of $860,000 after restoration. Relevant cost information follows: Land  $       8,020,000 Estimated restoration costs  $       1,530,000 If Perry maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?

Which of the following is a characteristic of a perpetual inventory system?

Which of the following is a characteristic of a perpetual inventory system?

If Davis wanted to save a set amount each month in order to buy a new pick-up truck when the new models are next available, which time value concept would be used to determine the monthly payment?

Maroon Corp. purchased factory equipment that was installed and put into service January 1, 2020, at a total cost of $153,000. Salvage value was estimated at $9,000. The equipment is being depreciated over five years using the double-declining balance method. For the year 2021, Maroon should record depreciation expense on this equipment of

Purchased goodwill should

EXTRA CREDIT: 5.4 points Magnolia Co. had a sheet metal cutter that cost $120,000 on January 5, 2016. This old cutter had an estimated life of nine years and a salvage value of $18,000. On April 3, 2021, the old cutter is exchanged for a new cutter with a fair value of $63,000. The exchange lacked commercial substance. Magnolia also received $12,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. Calculate the total gain or loss. Round to the nearest dollar. [class] of $[amount]   Prepare all entries that are necessary on April 3, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round to the nearest dollar. If the line or entry is not necessary, enter “no entry” and input 0 for the amount.) Account Titles and Explanation   Debit Credit To record depreciation expense   [dr1T] [dr1]                    [cr1T] [cr1] To record exchange of machinery   [dr2T] [dr2] [dr3T] [dr3] [dr4T] [dr4] [dr5T] [dr5]                 [cr2T] [cr2]                  [cr3T] [cr3]