Click the below link to access the answerACC 410B Final Exam MCQs Talbot Corporation purchased a parcel of land AnswerACC 410B Final Exam MCQs Talbot Corporation purchased a parcel of land AnswerACC 410B Final Exam MCQs Talbot Corporation purchased a parcel of land Answer ACC 410B Final Exam MCQs Talbot Corporation purchased a parcel of land Answer1 !n "anuar# 1$% &01'% Talbot Corporation purchased a parcel of land as a factor# site for (4$0%000 An old buildin) on the propert# was demolished% and construction be)an on a new buildin) which was completed on *o+ember '1% &01' ,al+a)ed materials resultin) from the demolition were sold for (1&%000 Costs incurred durin) this period included- .emolition of old buildin)% ('$%000% Architect/s fees% (1$%000% 0e)al fees for title in+esti)ation and purchase contract% (1%000% and Construction costs% (1%000%000 Talbot should record the cost of the land and new buildin)% respecti+el#% as222222 (4$0%000 and (1%000%000222222 (4$0%000 and (1%01$%000222222 (430%000 and (1%01$%000222222 (43$%000 and (1%00'%000& 4n which of the followin) situations should a compan# record a cost as a capital expenditure5222222 The cost increases the 6ualit# of assets222222 The cost increases the 6uantit# of assets222222 The cost increases the useful life of an asset222222 All of the abo+e costs should be recorded as capital expenditures' !n "anuar# &% &01'% Apple 7alle# 8roduce be)an construction of a new processin) plant The plant was expected to be 9nished and read# for use on ,eptember '0% &014 Expenditures for construction durin) &01' were as follows-"anuar# &% &01'% ($00%000% "ul# 1% &01'% (1%&00%000% and .ecember '1% &01'% (1%000%000 To fund this pro:ect% on "anuar# &% &01'% Apple 7alle# borrowed (1%300%000 on a construction loan at 10; interest This loan was outstandin) durin) the construction period The compan# also had ($%000%000 in +alue of (400%000 4t is estimated that the machiner# will )enerate future cash Bows of ('1$%000 The machiner# has a fair +alue of ('&$%000 7olmer should reco)ni=e a loss on impairment of222222 ( ?0?222222 (&$%000222222 ($0%000222222 (1$%0003 8l#mouth Minin) Corporation ac6uired% for ($%$00%000% a tract of land containin) an extractable natural resource Ceolo)ical sur+e#s estimate that the reco+erable reser+es will be 1%000%000 tons 8l#mouth is re6uired b# its purchase contract to restore the land at an estimated cost of (1$0%000 The landis expected to ha+e a +alue of (1%&$0%000 after restoration 8l#mouth maintains no in+entories of extracted materials @hat is the amount of depletion per ton5222222 (4&$222222 ($00222222 ($$0222222 (A&$< Titan Corporation ac6uired a patent on ,eptember &3% &01' Titan paid cash of (A$%000 to the seller 0e)al fees of (&%000 were paid related to the ac6uisition At what amount should Titan record the patent on its boo>s5222222 (&%000222222 (A'%000222222 (A$%000222222 (A1%00010 Dod)son Compan#/s .ecember '1% &014 balance sheet reports assets of (3%$00%000 and liabilities of (4%$00%000 All of Dod)son/s boo> +alues approximate their fair +alue% except for land% which has a fair +alue that is ($00%000 )reater than its boo> +alue !n .ecember '1% '014% Motle# Corporation paid (10%$00%000 to ac6uire Dod)son @hat amount of )oodwill should Motle# record as a result of this purchase5222222 (A%000%000222222 (4%$00%000222222 (&%000%000222222 ( ?0?11 4nno+ati+e Technolo)ies% 4nc incurred research and de+elopment costs of (1$0%000 and le)al fees of (4&%000 to ac6uire a patent The patent has a le)al life of &0 #ears and a useful life of 10 #ears @hat amount should 4nno+ati+e Technolo)ies record as 8atent Amorti=ation Expense in the 9rst #ear5222222 (1 for (14 per share4ssued &0%000 shares of common stoc> in exchan)e for le)al ser+ices +alued at ('00%000At the end of Hoberts/ 9rst #ear% total paid?in capital amounted to222222 ($30%000222222 ('00%000222222 (&30%000222222 (1$0%000&& !n "une 1$% Dandel Corporation reac6uired 10%000 shares of its (10 par +alue common stoc> for (&& per share Dandel uses the cost method to account for treasur# stoc> The :ournal entr# to record the reac6uisition of the stoc> should debit222222 Treasur# ,toc> for (100%000222222 Treasur# ,toc> for (&&0%000222222 Common ,toc> for (100%000222222 Common ,toc> for (100%000 and 8aid?in Capital in Excess of 8ar for (1&0%000&' The fair +alue of @illow Compan#/s common stoc> was ($1 per share at .ecember '1% &01' and (A' per share at .ecember '1% &014 @illow ac6uired 1%000 shares of its own common stoc> at (A0 per share on March 10% &014% and sold $%000 of these shares at (A$ per share on ,eptember &$% &014 @illow Compan# uses the cost method to account for treasur# stoc> The :ournal entr# to record the sale of the treasur# stoc> should credit222222 Treasur# ,toc> for ('00%000 and Hetained Earnin)s for (&$%000222222 Treasur# ,toc> for (&3$%000 and Hetained Earnin)s for (40%000222222 Treasur# ,toc> for ('00%000 and 8aid?in Capital from Treasur# ,toc> for (&$%000222222 Treasur# ,toc> for ('&$%000&$ Farnsworth 4nc declared a ($00%000 cash di+idend 4t currentl# has 10%000 shares of 3;% (100 par +alue cumulati+e preferred stoc> outstandin) 4t is one #ear in arrears on its preferred stoc> Dow much cash will Farnsworth distribute to the common stoc>holders5222222 (4&0%000222222 ($00%000222222 (1A0%000222222 ('40%000&A @eston Corporation owned 30%000 shares of Brandt Corporation% purchased in &003 for ('&0%000 !n .ecember &0% &01'% @eston declared a propert# di+idend of all of its Brandt Corporation shares on the basis of one share of Brandt for e+er# 10 shares of @eston common stoc> held b# its shareholders The propert# di+idend was distributed on "anuar# 10% &014 !n the declaration date% the a))re)ate mar>et price of the Brandt Corporation shares held b# @eston was (A10%000 The entr# to record the declaration of the di+idend would include a debit to Hetained Earnin)s Epropert# di+idends declaredF of222222 ('&0%000222222 (A10%000222222 (& price had increased b# 10?fold Mana)ement prefers the stoc> price to be within ran)e of the ma:orit# of potential in+estors% and on "une '0% &01'% split its stoc> &?for?1 8rior to the split% 8ear/s stoc>holders/ e6uit# section showed- Common ,toc>% &%000 shares at (100 par After the split% 8ear/s stoc>holders/ e6uit# section showed-222222 Common stoc>% 4%000 shares at ($0 par222222 Common stoc>% &%000 shares at (&00 par222222 Common stoc>% 1%000 shares at (&00 par222222 Common stoc>% 4%000 shares at (100 par'4 "oll#/s Corner Mar>et made credit sales durin) the month of !ctober of (&&$%000 The sales are sub:ect to a A; sales tax that was also collected @hich of the followin) would be included in the summar# :ournal entr# to reBect the sale transactions5222222 .ebit Accounts Hecei+able for (&'3%$00222222 Credit ,ales Taxes 8a#able for (1&%1'A222222 Credit ,ales He+enue for (&1&%&A4222222 .ebit ,ales Taxes 8a#able for (1'%$0040 Monroe Compan# owes (1 million that is due on "anuar# 1$ The compan# borrows (A00%000 on "anuar# 3 E$?#ear noteF and uses the proceeds to pa# downthe (1 million note and uses other cash to pa# the balance Dow much of the (1 million note is classi9ed as lon)?term in the .ecember '1 9nancial statements222222 (1%000%000222222 (0222222 (A00%000222222 (400%000ACC 410B Final Exam MCQs Talbot Corporation purchased a parcel of land Answer