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Question 7
Weir Co. uses straight-line depreciation for its property, plant,
and equipment, which, stated at cost, consisted of the following:
Weir's depreciation expense for 2005 and 2004 was $55,000 and
$50,000, respectively. What amount was debited to accumulated
depreciation during 2005 because of property, plant, and
equipment retirements?
Question 8
On January 2, 2004, Judd Co. bought a trademark from Krug
Co. for $500,000. Judd retained an independent consultant, who
estimated the trademark's remaining life to be unlimited because
the trademark will be renewed indefinitely. Its unamortized cost
on Krug's accounting records was $380,000. At the time of sale,
Krug estimated the useful life of the trademark to be 50 years. In
Judd's December 31, 2004 balance sheet, what amount should be
reported as accumulated amortization?
Question 9
Cart Co. purchased an office building and the land on which it is
located for $750,000 cash and an existing $250,000 mortgage. For
realty tax purposes, the property is assessed at $960,000, 60% of
which is allocated to the building. At what amount should Cart
record the building?
Question 10
Up Company owns 60% of SideCo, and Down Company owns the
other 40% of SideCo. Up Company and Down Company are
competitors in the same market. Which one of the following sets
reflects the most likely level of influence each company has over
SideCo?