[reo]

NINJA Question –

Added numbers to each MCQ so it’s easy for me to know which question you’re replying to. All help is appreciated, cheers! I tried my best to format it all. Sorry if it’s messy(difficult to diagnose).

1.

On March 1, 2015, Wolf Corporation purchased land as a factory site for $80,000. An old building on the property was demolished, and construction began on a new building that was completed on December 15, 2015. Costs incurred during this period are listed below:

Demolition of old building $4,000

Land survey done by an engineering firm (so to draw building plan) 800

Architect’s fees (for new building) 9,000

Legal fees for title investigation of land 600

Delinquent property taxes assumed 1,500

Trees and other landscaping after completion of building

(permanent in nature) 2,000

Excavation before construction for basement 3,000

Construction costs 400,000

Interest on construction loan 8,000

Premium on 6-month insurance policy during construction 1,000

Salvaged materials resulting from the demolition of the old building were sold for $500. The amounts Tiger should capitalize as the cost of the land and the new building would be

A Land: $83,500; Building: $440,500.

B Land: $80,000; Building: $420,000.

C Land: $84,600; Building: $400,000.

D Land: $87,600; Building: $421,800.

2.

Fast Runner Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $1,200,000 of 6% term corporate bonds on March 1, 2015, due on March 1, 2035, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 8%. As the controller of the company, the selling price of the bonds would be:

A $945,396

B $958,859

C $962,488

D $1,000,932

3.

Silver Company purchased office furniture and equipment for $10,000 and agreed to pay for the purchase by making six annual installment payments beginning one year from today. The installment payments include interest at 6%. What is the required annual installment payment?

A $1,919

B $2,034

C $2,160

D $2,230

Reo

[Missy]

Out of curiosity what review program are you using and are you watching lectures, reading the book, how are you learning aside from posting dozens of mcq and asking that a message board teach you how to solve all of them?

Granted this board is all about helping each other out but all of your posts are “here are a bunch of MCQ that I don't want to be bothered to figure out. Tell me not just the answer but how to get there.” seems a bit off to me………..

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Anonymous]

What are the answers? And what confuses you?

[Author]

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