Reference no: EM132720633
Questions -
Q1. Doro corporation had the following Expedintures for tge year ended nov. 30 2020:
- engine tune up and oil change on the companys 12 delivery trucks P 1300
- rearrangement of equipment on the main production line 5500. It is not evident that the arrangement will increase operational efficiency
- installation of alluminum siding on the manufacture plant, 32000
- replacement of the old air conditioning system in thrme manufacturing plant with a new system - 120000
- replacemnent of broken parts on the three machines - 1500
- annual painting of thr manufacturing plant- 11000
- purchase of new forkliff to move finished product to the loading dock 6000
- patching leaks in the roof of the manufacturing plant 6500. The repair work did not extend the useful life of the roof
The amount of each of the transactions is considered material.
What amount should be charged to repairs and maintenance expense?
Q2. On jan. 1 2019, abby company adopted a plan to accumulate funds for new plant building to be erected beginning jan 1 2024 at an estimated cost of 8million
The entity intends to make five equal annual deposits in a fund that will earn interest at 8% compounded annually. The first deposits is made on jan. 1 2019 and every jan 1 thereafter. Future value factors are as follows:
Future value og ordinary annuity of 1 at 8% for 5 periods 5.87
Future value of anuity in advance of 1 at 8% for 5 periods 6.34
What is the required annual deposits to the fund?
Q3. Abby corporation purchased a patent from anna co. For 220000 on july 1 2016. On july 1 2019, the entity purchased a competing patent for 68000 in order tp protect the original patent. On oct 1 2019, expeditures of 60000 for succcessful litigation in defense of patent were paid . Abby estimates that the useful life of the patent will be 20 years from the date of acquisition.what is the carrying value of the patent at dec 31 2019?
Q4. In 2015, abby company purchased a 5million life insurance policy on its president of which dalgona company is the beneficiary. Information regarding the policy of the year ended dec 31, 2019 follows
Cash surrender value, jan 1 is 690000
Cash surrender value, dec 31 is 820000
Annual advance premim paid january 1 is 400000
During the current year , dividends of 50000 were applied to increase the cash surrender value of the policy. What amount should be reported as life insurance expense , if any, for 2019?
Q5. Abby electronics a computer store specializes in the sale of computer and software packages and hafmd tge following transactions with one of its suppliers
Purchases of computer 200000
Purchases of commercial software package 75000
Return and allowances 8000
Purchase discount taken 4100
Purchases were made throughout the year on term 2/10, n/30. All returns and allowances took place within 5 days of purchase and prior to payment of account. How much is the discount lost?