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3 years ago

QUESTION 11

1 answer:

6 0

Easter Corporation purchased a new manufacturing building during the current year. The building has an estimated useful life of 30 years. The appropriate year-end adjusting entry would be Debit Depreciation expense and credit Accumulated depreciation.

<u>Explanation:</u>

With time the value of the fixed asset reduces due to wear and tear, This reduction in the value is called Depreciation.

At the end of year the adjusting entry would be like this, we will debit the depreciation expense account and credit the accumulated depreciation account.

When we debit the depreciation account it will be shown in the income statement as an expense on the debit side and on the other hand the accumulated depreciation will appear in the balance sheet as a contra account . This will reduce the amount of fixed asset i.e building.

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Answer:

$20000 gain for John Corporation and $10000 loss for Bass Corporation.

Explanation:

John Corporation gain(loss) = FMV of property - Liability assumed - Stock basis

= 55000-10000-25000

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3 years ago

During 2017, Bolton Corporation acquired a mineral mine for $1,500,000 of which $200,000 was determined to be the salvage value

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Answer:

$162,500

Explanation:

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Question 7 (multiple choice)

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On January 1, 20X1, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To

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Answer:

B. $1,760

Explanation:

Given that:

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A publicist's compensation package includes the total cost of a $180-per-

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Answer:

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$t_1=\$42,000$ salary per year