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Homework answers / question archive / 1)Y Corporation purchased a limited-life intangible asset for $120,000 on January 1, 2019
1)Y Corporation purchased a limited-life intangible asset for $120,000 on January 1, 2019. It has a useful life of 10 years. What total amount of amortization expense should have been recorded on the intangible asset by December 31, 2019?
Select one:
a. $36,000.
b. $24,000.
c. $32,000.
d. $12,000.
X Corporation acquired a patent on June 1, 2019. X paid cash of $19,000 to the seller. Legal fees of $200 were paid related to the acquisition. What amount should be debited to the patent account?
Select one:
a. $200.
b. $18,800.
c. $19,200.
d. $19,000.
2)X company exchanged old equipment with a new one. There is commercial substance of transaction. Cost of old equipment 15000, Accumulated depreciation of old equipment 7000, The list price of new equipment 20000, Trade in allowance for old 11000, Fair market value of old 11500. The cash paid is ---------
Select one:
a. $9000.
b. $20500.
c. $8000.
d. $7000.
Clear my choice
On August 1, 2019 X company purchased furniture at $13,000. The salvage value is $1,000 and the useful life is 5 years. X uses the straight-line method. The depreciation expense for 2019 is ------.
Select one:
a. $1,000.
b. $2,000.
c. $833.
d. $1,667.
3)Suppose that the sales invoice shows that the gross sales are $13,920 and the sales tax rate is 0.16. the sales revenues account is ------.
Select one:
a. $16,146.
b. $13,920.
c. $12,000.
d. $16,400.
Clear my choice
On September 1, 2020, X Company reacquired 30,000 shares of its $10 par value common stock for $15 per share. X uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit
Select one:
a. Common Stock for $500,000.
b. Common Stock for $300,000.
c. treasury Stock for $300,000.
d. Treasury Stock for $450,000.
Clear my choice
1)Answ to the problem is option d -$ 12000.
Amortization expenses=cost /life
$120000/10=$ 12000
2. 2.Answ to the problem is option c-$ 19,200.
Cost of asset = purchase price+cost related to acquisition
=$19000+$200=$19200.
2)New equipment cost:- 20,000
Old equipment fair value :-11,500
Trade in discount allowed :-11,000
Old equipment book value:-(15,000-7,000)= 8,000
For exchange cash to be paid is:-
20,000- 11,000= 9,000
Calculation of depreciation expenses
Cost of furniture :- 13000
Salvage value:- 1,000
Years of life:- 5 yrs
Depreciation :_ (13,000- 1,000)/5
= 2,400
3)please see the attached file.
