Question 13
Mohave Inc. purchased land, building, and equipment from Laguna
Corporation for a cash payment of $352,800. The estimated fair
values of the assets are land $67,200, building $246,400, and
equipment $89,600. At what amounts should each of the three assets
be recorded?
Question 14
Fielder Company obtained land by issuing 2,000 shares of its $12 pa r
value common stock. The land was recently appraised at $103,700.
The common stock is actively traded at $50 per share. Prepare the
journal entry to record the acquisition of the land.
Question 15
Navajo Corporation traded a used truck (cost $23,600, accumulated
depreciation $21,240) for a small computer worth $4,366. Navajo also
paid $1,180 in the transaction. Prepare the journal entry to record the
exchange.
Question 16
Mehta Company traded a used welding machine (cost $10,080,
accumulated depreciation $3,360) for office equipment with an
estimated fair value of $5,600. Mehta also paid $3,360 cash in the
transaction. Prepare the journal entry to record the exchange.
Question 17
Depreciation is normally computed on the basis of the nearest
A). full month and to the nearest dollar.
B). day and to the nearest cent.
C). day and to the nearest dollar.
D). full month and to the nearest cent.
Question 18
Fernandez Corporation purchased a truck at the beginning of 2012 for
$54,180. The truck is estimated to have a salvage value of $2,580 and
a useful life of 206,400 miles. It was driven 29,670 miles in 2012 and