Accounting Iii

1 Accounting 303 Name _______________________ Exam 2, Chapters 4 and 5 Spring 2011 segmentation _______ Row _______ I. Multiple Choice Questions. (2 points each, 28 points in total) bear witness each question conservatively and indicate your answer by circling the letter preceding the wiz best answer. 1. Changes in history estimates are reported a. presently and prospectively. b. retroactively and currently. c. retroactively, currently, and prospectively. d. by restating prior years. 2. Pablo purchased a lathe on January 1, 2009, at a cost of $45,000. At the epoch of purchase, the lathe was expected to draw a five-year economic disembodied spirit and a residuum cherish of $3,000. Pablo uses straight-line depreciation. At the beginning of 2011, Pablo estimated the lathe to have a remaining life of four years with no residual time value. For the year stop December 31, 2011, Pablo would report depreciation of: a. $6,750. b. $7,500. c. $7,050. d. $7,000. phys ical exertion the spare-time activity information for questions 3 and 4. On May 1, dance Co. hold to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was perfect on December 31, 2011. The following additional facts mention to the dealing: The Footwear Division qualifies as a chemical piece of the entity according to GAAP regarding give up operations.

The book value of Footwears assets total $48 million on the date of the sale. Footwears run income was a pre- appraise loss of $10 million in 2011. Foxtrots income tax grade is 40%. 3. In the 2011 income statement for Foxt rot Co., it would report income from cease ! operations of: a. $9.2 million. b. $13.2 million. c. $22 million. d. $26 million. 2 4. compute that the Footwear Divisions assets had not been sold by December 31, 2011, exactly were considered held for sale. Assume that the comme il faut value of these assets at December 31 was $40 million. In the 2011 income statement for Foxtrot Co., it would report a loss from discontinued operations of: a. $3...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay