Reference no: EM132960655

Questions -

Q1) A company purchases a property that has land, equipment, and a building for a total of $869,000. If the fair value of the land is $180,000, the fair value of the equipment $370,000, and the fair value of the building is $710,000, how much should equipment be debited for?

$159,000

$370,000

$227,632

$255,183

Q2) A company factors $228,000 of accounts receivable on a without recourse basis. Assume that 4% is retained for probable adjustments and 7% is the finance charge. If any recourse liability is assumed to have a fair value of $9,000, what would be true within this company's factoring journal entry?

Dr. Loss on sale of receivables $9,120

Dr. Loss on sale of receivables $24,960

Dr. Cash $202,920

Dr. Cash $193,920

Q3) A retail company has the following amounts: Building $328,000; Land (held for sale) $156,000; Franchises $75,000; and Accumulated depreciation $82,000. Based on these amounts, what would be the total property, plant, and equipment?

$477,000

$410,000

$246,000

$402,000

Q4) A company's television inventory has the following amounts "per unit": Selling and disposal costs $85; Normal profit $90; Historical cost $735; and Selling price $810. If the company has 30 units in ending inventory, what should be the LCNRV total amount of this item?

$19,050

$21,600

$22,050

$21,750

Q5) A company assumes a federal unemployment rate of 0.8%, a state unemployment rate of 5.4%, a FICA tax rate of 7.65%, and a personal income tax rate of 25%. Employees pay 5% of their gross salaries for retirement contributions that the company matches. The company also pays a total of $28,000 for employees' health insurance. If the company has $495,000 in total gross salaries and wages, how much salaries and wages expense is debited within the fringe benefits entry of the payroll entries?

$495,000

$308,633

$28,000

$52,750