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the land was appraised at 175 000 the land improvements were appraised at 70 000 and 647861

1. A company paid $326,000 for property that included land, land improvements, and a building. The land was appraised at $175,000, the land improvements were appraised at $70,000, and the building was appraised at $105,000. What is the allocation of property costs to the three assets purchased?

a. Land, $150,000; Land Improvements, $60,000; Building,

$90,000

b. Land, $163,000; Land Improvements, $65,200; Building,

$97,800

c. Land, $150,000; Land Improvements, $61,600; Building,

$92,400

d. Land, $159,000; Land Improvements, $65,200; Building,

$95,400

e. Land, $175,000; Land Improvements, $70,000; Building,

$105,000

2. A company purchased a truck for $35,000 on January 1, 2011. The truck is estimated to have a useful life of four years and an estimated salvage value of $1,000. Assuming that the company uses straight line depreciation, what is the depreciation expense on the truck for the year ended December 31, 2012?

a. $8,750

b. $17,500

c. $8,500

d. $17,000

e. $25,500

3. A company purchased machinery for $10,800,000 on January 1, 2011. The machinery has a useful life of 10 years and an estimated salvage value of $800,000. What is the depreciation expense on the machinery for the year ended December 31, 2012, assuming that the double declining balance method is used?

a. $2,160,000

b. $3,888,000

c. $1,728,000

d. $2,000,000

e. $1,600,000

4. A company sold a machine that originally cost $250,000 for $120,000 when accumulated depreciation on the machine was $100,000. The gain or loss recorded on the sale of this machine is

a. $0 gain or loss.

b. $120,000 gain.

c. $30,000 loss.

d. $30,000 gain.

e. $150,000 loss.

5. A company had average total assets of $500,000, gross sales of $575,000, and net sales of $550,000. The company’s total asset turnover is

a. 1.15

b. 1.10

c. 0.91

d. 0.87

e. 1.05

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