Reference no: EM133006782

Questions -

Q1-On March 1, 2022, Pharoah Company acquired real estate, on which it planned to construct a small office building, by paying $77,500 in cash. An old warehouse on the property was demolished at a cost of $7,700; the salvaged materials were sold for $1,600. Additional expenditures before construction began included $1,100 attorney's fee for work concerning the land purchase, $4,250 real estate broker's fee, $8,600 architect's fee, and $13,500 to put in driveways and a parking lot. Determine the amount to be reported as the cost of the land.

Q2-Windsor Chemicals Company acquires a delivery truck at a cost of $35,600 on January 1, 2022. The truck is expected to have a salvage value of $2,900 at the end of its 5-year useful life. Compute annual depreciation for the first and second years using the straight-line method. What is the Annual depreciation under the straight-line method for the First year & the second year?

Q3-Sunland Company purchased a new machine on October 1, 2022, at a cost of $80,360. The company estimated that the machine has a salvage value of $7,980. The machine is expected to be used for 70,800 working hours during its 7-year life. Compute the depreciation expense under the straight-line method for 2022 and 2023, assuming a December 31 year-end. What is The depreciation expense under the straight-line method for 2022 & 2023?

Q4-These are selected 2022 transactions for Sheffield Corporation:

Jan. 1 Purchased a copyright for $106,500. The copyright has a useful life of 6 years and a remaining legal life of 32 years

Mar.1 Purchased a patent with an estimated useful life of 5 years and a legal life of 24 years for $110,400.

Sep.1 Purchased a small company and recorded goodwill of $154,250. Its useful life is indefinite.

Indicate the amount of amortization expense on December 31, 2022, for Sheffield Corporation.

Q5-Suppose in its 2022 annual report that McDonald's Corporation reports beginning total assets of $24 billion, ending total assets of $16 billion, net sales of $25 billion, and net income of $5 billion.

(a) Compute McDonald's return on assets.

(b) Compute McDonald's asset turnover.