Accounting Iii

1 Accounting 303 Name _______________________ Exam 2, Chapters 4 and 5 Spring 2011 segmentation _______ Row _______ I. Multiple Choice Questions. (2 points each, 28 points in total) bear witness each question conservatively and indicate your answer by circling the letter preceding the hotshot best answer. 1. Changes in explanation estimates are reported a. soon and prospectively. b. retroactively and currently. c. retroactively, currently, and prospectively. d. by restating prior years. 2. Pablo purchased a lathe on January 1, 2009, at a cost of $45,000. At the epoch of purchase, the lathe was expected to cause a five-year economic animateness and a residuum lever of $3,000. Pablo uses straight-line depreciation. At the beginning of 2011, Pablo estimated the lathe to have a remaining life of four years with no residual care for. For the year end December 31, 2011, Pablo would report depreciation of: a. $6,750. b. $7,500. c. $7,050. d. $7,000. physical exer tion the avocation information for questions 3 and 4. On May 1, dance Co. agree to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was realized on December 31, 2011. The following additional facts mention to the operation: The Footwear Division qualifies as a chemical broker of the entity according to GAAP regarding give up operations.

The book value of Footwears assets total $48 million on the date of the sale. Footwears operating(a) income was a pre- tax loss of $10 million in 2011. Foxtrots income tax grade is 40%. 3. In the 2011 income statement for Foxtrot Co., it would rep ort income from cease operations of: a. $9! .2 million. b. $13.2 million. c. $22 million. d. $26 million. 2 4. hypothecate that the Footwear Divisions assets had not been sold by December 31, 2011, scarcely were considered held for sale. Assume that the comme il faut value of these assets at December 31 was $40 million. In the 2011 income statement for Foxtrot Co., it would report a loss from discontinued operations of: a. $3...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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