amount as 42) The reason goodwill is sometimes referred to as a master
valuation account is because 43) Which of the following items is a
current liability? 44) Which of the following statements is false? 45)
Stock dividends distributable should be classified on the 46) Simson
Company has 35 employees who work 8-hour days and are paid hourly.
On January 1, 2006 the company began a program of granting its
employees 10 days of paid vacation each year. Vacation days earned in
2006 may first be taken on January 1, 2007. Information relative to these
employees is as follows: Year Hourly Wages Vacation Days Earned by
Each Employee Vacation Dayse Used by Each Employee 2006 $28.50
10 0 2007 $27.00 10 8 2008 $28.50 10 10 What is the amount of
expense relative to compensated absences that should be reported on
Simson’s income statement for 2006? 47) A company buys an oil rig for
$1,000,000 on January 1, 2007. The life of the rig is 10 years and the
expected cost to dismantle the rig at the end of 10 years is $200,000
(present value at 10% is $77,110). 10% is an appropriate interest rate for
this company. What expense should be recorded for 2007 as a result of
these events? 48) A company offers a cash rebate of $1 on each $4
package of batteries sold during 2007. Historically, 10% of customers
mail in the rebate form. During 2007, 6,000,000 packages of batteries
are sold, and 210,000 $1 rebates are mailed to customers. What is the
rebate expense and liability, respectively, shown on the 2007 financial
statements dated December 31? 49) A contingency can be accrued when
50) Which of the following sets of conditions would give rise to the
accrual of a contingency under current generally accepted accounting
principles? 51) Mark Ward is a farmer who owns land which borders on
the right-of-way of the Northern Railroad. On August 10, 2007, due to
the admitted negligence of the Railroad, hay on the farm was set on fire
and burned. Ward had had a dispute with the Railroad for several yea