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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?
Question 11
On July 1, 2005, Casa Development Co. purchased a tract of
land for $1,200,000. Casa incurred additional costs of $300,000
during the remainder of 2005 in preparing the land for sale.
The tract was subdivided into residential lots as follows: Using
the relative sales value method, what amount of costs should be
allocated to the Class A lots?
Question 12
On January 2 of the current year, Cruises, Inc. borrowed $3
million at a rate of 10% for three years and began construction
of a cruise ship. The note states that annual payments of