Accounting Iii

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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 carefully and indicate your answer by circling the letter preceding the one best answer.
1. Changes in report estimates are reported
a. currently 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 have a five-year economic life and a residuum value 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 value. For the year ended December 31, 2011, Pablo would report depreciation of: a. $6,750.
b. $7,500.
c. $7,050.
d. $7,000.
physical exertion the following information for questions 3 and 4.
On May 1, dance Co. agreed to sell the assets of its Footwear Division to Albanese Inc. for $80 million. The sale was completed on December 31, 2011.
The following additional facts mention to the transaction: The Footwear Division qualifies as a chemical element 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 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 report income from cease operations of:
a. $9.2 million.
b. $13.2 million.
c. $22 million.
d. $26 million.
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4. Suppose that the Footwear Divisions assets had not been sold by December 31, 2011, but 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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