中级会计习题 comprehensiveexamc.docx

1、中级会计习题 comprehensiveexamcCOMPREHENSIVE EXAMINATION CPART 3 (Chapters 1014)Problem C-I Multiple Choice Tangible and Intangible Assets.Choose the best answer for each of the following questions and enter the identifying letter in the space provided. 1. When the sum-of-the-years-digits method is used,

2、depreciation expense for a given asset willa. decline by a constant amount each year.b. be the same each year.c. decrease rapidly and then slowly over the life of the asset.d. vary from year to year in relation to changes in output. 2. Perry Corporation acquired land, buildings, and equipment from a

3、 bankrupt company at a lump-sum price of $550,000. At the time of acquisition Perry paid $50,000 to have the assets appraised. The appraisal disclosed the following values: Land $320,000 Buildings 256,000 Equipment 64,000What cost should be assigned to the land, buildings, and equipment, respectivel

4、y?a. $400,000, $320,000, and $80,000.b. $275,000, $220,000, and $55,000.c. $300,000, $240,000, and $60,000.d. $200,000, $200,000, and $200,000. 3. In accordance with GAAP, the maximum period over which a patent can be amortized isa. 20 years.b. 28 years.c. 40 years.d. 50 years. 4. Purchased goodwill

5、 representsa. excess of price paid over fair value of net assets obtained in a combination.b. excess of price paid over the book value of the net assets obtained in a combination.c. the difference in the aggregate amount of the market prices of the stock of the combining companies.d. a tangible asse

6、t.Use the following data to answer questions 5 through 9:Davis Company purchased a new piece of equipment on July 1, 2012 at a cost of $1,080,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of $90,000. The current year end is 12/31/13. Davis records deprecia

7、tion to the nearest month. 5. What is straight-line depreciation for 2013?a. $99,000.b. $108,000.c. $198,000.d. $216,000. 6. What is sum-of-the-years-digits depreciation for 2013?a. $263,999.b. $947,000.c. $324,000.d. $330,000. 7. What is double-declining-balance depreciation for 2013?a. $2,59,200.b

8、. $345,600.c. $396,000.d. $432,000. 8. If Davis expensed the total cost of the equipment at 7/1/12, what was the effect on 2012 and 2013 income before taxes, assuming Davis uses straight-line depreciation?a. $882,000 understated and $198,000 overstated.b. $972,000 understated and $108,000 overstated

9、.c. $981,000 understated and $198,000 overstated.d. $1,080,000 understated and $108,000 overstated. 9. If, at the end of 2014, Davis Company decides the equipment still has five more years of life beyond 12/31/14, with a salvage value of $90,000, what is straight-line depreciation for 2014? (Assume

10、straight-line used in all years.)a. $108,000.b. $115,500.c. $130,500.d. $198,000.Use the following data for questions 10 through 17. Each question is independent of the other questions.Sawyer Corporation has a machine (Machine A) that it acquired on 1/1/12 for $360,000. On 12/31/12 such machines hav

11、e a selling price and fair market value of $414,000. When used in production, such machines have an estimated useful life of 10 years with no salvage value. Use the straight-line method.Brown Corporation has a machine (Machine B) that it acquired on 1/1/12 for $486,000. On 12/31/12 such machines hav

12、e a selling price and fair market value of $360,000. When used in production, such machines have an estimated useful life of 10 years with no salvage value. Use the straight-line method.On 12/31/12 Brown gave Machine B plus $54,000 cash to Sawyer in return for Machine A. 10. Assume that both Sawyer

13、and Brown are new machine dealers and that the machines are still new. Also assume that the exchange lacks commercial substance. At what amount will Machine A be recorded on Browns books?a. $486,000.b. $414,000.c. $540,000.d. $360,000. 11. Given the assumptions in 10 above, at what amount will Machi

14、ne B be recorded on Sawyers books?a. $313,043.b. $486,000.c. $360,000.d. $421,044. 12. Assume that instead of dealers, both Sawyer and Brown are machine manufacturers and use the machines in production. Assume the exchange lacks commercial substance. At what amount will Brown record Machine A?a. $36

15、0,000.b. $414,000.c. $486,000.d. $540,000. 13. Given the assumption in 12 above, at what amount will Sawyer record Machine B?a. $371,739.b. $270,000.c. $335,736.d. $281,739. 14. Given the assumption in 12 above except that the fair values of Machines A and B are $504,000 and $450,000, respectively,

16、at what amount will Brown record Machine A?a. $437,400.b. $504,000.c. $450,000.d. $491,400. 15. Return to the original problem. Assume that Sawyer is a dealer selling new machines and that Brown is a manufacturer. Assume that the exchange has commercial substance. For this transaction, at what amoun

17、t will Sawyer record the truck?a. $360,000.b. $491,400.c. $414,000.d. $437,400. 16. Given the assumptions in 15 above, at what amount will Brown record Machine A?a. $360,000.b. $414,000.c. $405,000.d. $364,500. 17. Given the assumptions in 15 above except that the selling prices and fair market valu

18、es of A and B are $504,000 and $450,000, respectively, at what amount will Brown record Machine A?a. $437,400.b. $405,000.c. $504,000.d. $450,000.For the following two questions, indicate the nature of the account or accounts to be debited when recording each transaction. 18. A replacement, which ex

19、tended the life but did not increase the quality of units produced by the asset, cost $15,000.a. Asset(s) only.b. Accumulated amortization, or depletion or depreciation only.c. Expense only.d. Asset(s) and expense. 19. Jim Dolan and Matt Stine, maintenance repairmen, spent five days in unloading and

20、 setting up a new $30,000 precision machine in the plant. Their wages earned in this five-day period totaled $800.a. Asset(s) only.b. Accumulated amortization, depletion, or depreciation only.c. Expense only.d. Asset(s) and expense. 20. Property, plant, and equipment are conventionally presented in

21、the balance sheet ata. replacement cost less accumulated depreciation.b. historical cost less salvage value.c. original cost less accumulated depreciation.d. acquisition cost less net book value thereof. 21. As generally used in accounting, what is depreciation?a. It is a process of asset valuation

22、for balance sheet purposes.b. It applies only to long-lived intangible assets.c. It is used to indicate a decline in market value of a long-lived asset.d. It is an accounting process which allocates long-lived asset cost to accounting periods.Problem C-II Assignment of Costs.Match the following cost

23、 items with these appropriate accounts: a. Land c. Land Improvements b. Buildings d. Other 1. Interest cost incurred during building construction. 2. Back taxes on purchased plot of land to be used for building site. 3. Assessment by city for drainage system. 4. Building permits. 5. Landscaping shru

24、bs planted after building has been constructed. 6. Demolition costs of building on land bought for plant site. 7. Interest cost incurred after completion of building construction. 8. Recording fees for land. 9. Architects fees. 10. Grading and filling building site. 11. Parking lots. 12. Fences.Prob

25、lem C-III Research and Development.Identify (in accordance with FASB Statement No. 2) each of the following activities as: a. Research and development b. Not research and development 1. Testing in search for, or evaluation of, product or process alternatives. 2. Cost of marketing research to promote

26、 new product. 3. Adaptation of an existing capability to a particular requirement or customers need. 4. Design, construction, and testing of pre-production prototypes and models. 5. Routine, on-going efforts to refine, enrich, or improve the qualities of an existing product. 6. Engineering activity

27、required to advance the design of a product to the manufacturing stage. 7. Searching for applications of new research findings. 8. Laboratory research aimed at discovery of new knowledge. 9. Conceptual formulation and design of possible product or process alternatives. 10. Trouble-shooting break-dow

28、ns during production. 11. Periodic design changes to existing products. 12. Quality control during commercial production including routine testing. 13. Costs of testing prototype and design modifications. 14. Engineering follow-through in an early phase of production. 15. Design, construction, and o

29、peration of a pilot plant not useful for commercial production.Problem C-IV Exchange of Assets.Assume that the following cases are independent and rely on the following data. Make entries on the books of both companies. Jensen Co. Merton Co. Equipment (cost) $900,000 $1,650,000 Accumulated depreciat

30、ion 290,000 900,000 Fair value of equipment 700,000 700,0001. Jensen Co. and Merton Co. traded the above equipment. The exchange has commercial substance. Jensen Co.s Books: Merton Co.s Books:2. Jensen Co. and Merton Co. traded the above equipment. The exchange lacks commercial substance. Jensen Co.

31、s Books: Merton Co.s Books:Assume that the following cases are independent and rely on the following data. Make entries on the books of both companies. Jensen Co. Merton Co. Equipment (cost) $900,000 $1,650,000 Accumulated depreciation 290,000 1,050,000 Fair value of equipment 560,000 700,000 Cash received (paid) (140,000) 140,0003. Jensen Co. and Merton Co. traded the above equipment. The exchange has commercial substance. Jensen Co.s Books: Merton Co.s Books:4. Jensen Co. and Merton Co. traded the above equipment. The exchange lacks commercial subs