ACCT 304-Our company exchanged land and cash of $5,000
Quiz, below select a – d answers, thank you. 2. (TCO 3) Our company exchanged land and cash of $5,000 for similar land. The book valueand the fair value of the land were $90,000 and $100,000, respectively. Assuming the exchangelacks commercial substance, which amount is correct? (Points : 5)Debit Cash $5,000Debit Cash $10,000Credit Cash $5,000Credit Cash $10,000 5. (TCO 4) On September 30, 2013, our company purchased a machine for $100,000. Theestimated service life is 10 years, with a $10,000 residual value. Our company records partialyear depreciation based on the number of months in service. Depreciation for 2013 using thestraight-line method is (Points : 5)$6,750.$7,500.$2,250.$2,500. 7. (TCO 5) Which of the following investment securities may be classified as held-to-maturitysecurities in its balance sheet? (Points : 5)Common stockCallable preferred stock Long-term debenture bondsAll of the above 10. (TCO 2) Goodwill is (Points : 5)the excess of the fair value of a business over the fair value of all net identifiable assets.amortized over the greater of its estimated life or 40 years.only recorded by the seller of a business.None of the above 19. (TCO 5) If Company 1 exercises significant influence over Company 2 and owns 38% of itscommon stock, then Company 1 (Points : 5)would record dividends received from Company 2 as investment revenue.would increase its investment account when Company 2 declares dividends.would record 38% of the net income of Company 2 as investment income each year.All of the above
