The Lance Beatty Brewing Company makes a lump-sum purchase f…

The Lance Beatty Brewing Company makes a lump-sum purchase for a total of $300,000.  Included in the purchase is land appraised at $150,000, land improvements at $20,000, equipment appraised at $45,000, dilapidated buildings appraised at $75,000, and advanced computer systems appraised at $110,000.  When recording the purchase, what value should the company allot to land?

Woody Organization issued a five-year note on January 1, Yea…

Woody Organization issued a five-year note on January 1, Year 1 with a face value of $100,000 and a stated interest rate of 3%, in exchange for a vehicle.  Annual payments of principal and interest are required on December 31st of each year.  What is the amount of each annual (periodic) payment?

Non Ti Scordare di Me Company purchased equipment on January…

Non Ti Scordare di Me Company purchased equipment on January 1, Year 1 with a cost of $250,000, a useful life of 7 years, and a $40,000 salvage value.  Calculate the book value of the equipment after Year 2 if the double-declining-balance method was used.  SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.

Sardegna Enterprises issued three-year bonds with a par valu…

Sardegna Enterprises issued three-year bonds with a par value of $150,000 and a stated interest rate of 6% on January 1, Year 1.  At the time of issuance, the market rate was 8%.  Interest is paid semiannually, and Sardegna Enterprises received $142,134 cash upon issuance of the bonds.  Using the effective-interest method, complete the amortization table for the bonds.  For the period ending on December 31, Year 1, what is (A) the amount of cash paid for interest to the bond holder, (B) the interest expense reported for the period, (C) the amount of discount amortized, and (D) the carrying value of the bond as of the end of the period?  SHOW YOUR WORK FOR POTENTIAL OF EARNING PARTIAL CREDIT IN THE CASE OF AN INCORRECT ANSWER.