5 Lyle inc. purchased certain plant assets under a deferred payment contract on December 31, 2018 The agreement was to pay $20,000 at the time of purchase and $20,000 at the end of each of the next 5 years T plant assets should be valued at a. Present value of a $20,000 ordinary annuity for 5 years b $120,000 $120,000 minus imputed interest $120,000 plus imputed interest C. Ashton Company exchanged a nonmonetary asset with a cost of $30,000 and accumulated depreciation of $16,000 for another nonmonetary asset worth $12,000. Ashton received $1,400 cash. In the entry to record this exchange, Ashton should record a: 6 Bu 1yuo $2,000 gain $2,000 loss a. FU 19000 $600 gain C. $600 loss 7. The following expenditures were among those incurred by Jensen Corporation during the current year. Replacement of tiles on portion of roof that had been leaking Overhaul of machinery that is expected to extend its useful life for another 2 years 6,000 $4,000 How much should be charged to repairs and maintenance in the current year: $0 $4,000 $6,000 10,000 a company replaces an old asphalt roof on its plant with a new fiberglass insulated roof, which of the g types of expenditure occurs? rdinary repair ldition rrangement maintenance
5 Lyle inc. purchased certain plant assets under a deferred payment contract on December 31, 2018 The agreement was to pay $20,000 at the time of purchase and $20,000 at the end of each of the next 5 years T plant assets should be valued at a. Present value of a $20,000 ordinary annuity for 5 years b $120,000 $120,000 minus imputed interest $120,000 plus imputed interest C. Ashton Company exchanged a nonmonetary asset with a cost of $30,000 and accumulated depreciation of $16,000 for another nonmonetary asset worth $12,000. Ashton received $1,400 cash. In the entry to record this exchange, Ashton should record a: 6 Bu 1yuo $2,000 gain $2,000 loss a. FU 19000 $600 gain C. $600 loss 7. The following expenditures were among those incurred by Jensen Corporation during the current year. Replacement of tiles on portion of roof that had been leaking Overhaul of machinery that is expected to extend its useful life for another 2 years 6,000 $4,000 How much should be charged to repairs and maintenance in the current year: $0 $4,000 $6,000 10,000 a company replaces an old asphalt roof on its plant with a new fiberglass insulated roof, which of the g types of expenditure occurs? rdinary repair ldition rrangement maintenance
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions
Section: Chapter Questions
Problem 38P
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please answer question 6
Transcribed Image Text:5 Lyle inc. purchased certain plant assets under a deferred payment contract on December 31, 2018 The
agreement was to pay $20,000 at the time of purchase and $20,000 at the end of each of the next 5 years T
plant assets should be valued at
a.
Present value of a $20,000 ordinary annuity for 5 years
b $120,000
$120,000 minus imputed interest
$120,000 plus imputed interest
C.
Ashton Company exchanged a nonmonetary asset with a cost of $30,000 and accumulated depreciation of
$16,000 for another nonmonetary asset worth $12,000. Ashton received $1,400 cash. In the entry to record this
exchange, Ashton should record a:
6
Bu 1yuo
$2,000 gain
$2,000 loss
a.
FU 19000
$600 gain
C.
$600 loss
7. The following expenditures were among those incurred by Jensen Corporation during the current year.
Replacement of tiles on portion of roof that had been leaking
Overhaul of machinery that is expected to extend its useful life for another 2 years 6,000
$4,000
How much should be charged to repairs and maintenance in the current year:
$0
$4,000
$6,000
10,000
a company replaces an old asphalt roof on its plant with a new fiberglass insulated roof, which of the
g types of expenditure occurs?
rdinary repair
ldition
rrangement maintenance
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