How the allocation would be performed

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Problem 1: How is the cost of a lump-sum purchase allocated to the individual assets acquired?

Problem 2: Provide a simple example of how the allocation would be performed if your company paid $1,000,000 cash in total for a restaurant (land, building, and equipment), and the appraised value was actually $1,200,000 for the 3 asset components $400,000, $500,000, and $300,000, respectively.

Problem 3: Does the balance in the Accumulated Depreciation - Machinery account represent funds to replace the machinery when it wears out? If not, what does it represent?

Problem 4: Assume you work for a company in sales and therefore are entitled to not only hourly pay, but commission and bonus as well. You work 40 hours in a payroll week. Calculate your gross pay for your company if you make $x per hour (you select your rate!), earn a 5% bonus (of gross pay), and earn 10% commission (of gross pay).

Problem 5: Unfortunately, you do not get to keep all your Gross Pay. Assuming you have the following withholding deductions taken out of your pay, now calculate your Net Pay.

Withholding deductions:

Employee income tax (20%)

Employee OASDI tax (see book for how to calculate)Employee Medicare tax (1.45%)

Employee health insurance75

Employee contribution to United Way20

Reference no: EM132819391

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