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The discount resulting from the determination of a note payable's
present value should be reported on the balance sheet as a(an)
Question 15
Land was purchased to be used as the site for the construction of
a plant. A building on the property was sold and removed by the
buyer so that construction on the plant could begin. The proceeds
from the sale of the building should be
Question 16
Park Co. uses the equity method to account for its January 1,
2004, purchase of Tun Inc.'s common stock. On January 1, 2004,
the fair values of Tun's FIFO inventory and land exceeded their
carrying amounts. How do these excesses of fair values over
carrying amounts affect Park's reported equity in Tun's 2004
earnings?
Question 17
On July 1, 2005, Pell Co. purchased Green Corp. ten-year, 8%
bonds with a face amount of $500,000 for $420,000. The bonds
mature on June 30, 2013 and pay interest semi-annually on June
30 and December 31. Pell has the intent and ability to hold the
bonds until maturity. Using the interest method, Pell recorded
bond discount amortization of $1,800 for the six months ended
December 31, 2005. For this held-to-maturity investment, Pell
should report 2005 revenue of
Question 18
Jersey, Inc. is a retailer of home appliances and offers a service
contract on each appliance sold. Jersey sells appliances on
installment contracts, but all service contracts must be paid in full