56、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
During late December 2007 Popular Publishing Inc. acquired a small competitor, Max's Magazines. In the evaluation of the acquisition it was determined that the customer lists of Max's Magazines had a fair value of $50,000. Popular Publishing had spent $15,000 during the year updating and maintaining its own customer lists. What is the correct amount and asset account that will be recorded by Popular Publishing for the year-ended December 31, 2007, related to customer lists? Select exactly 1 answer(s) from the following: A. $50,000 identifiable intangible asset B. $65,000 identifiable intangible asset C. $50,000 unidentifiable intangible asset D. $65,000 unidentifiable intangible asset
57、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.
Melbourne Manufacturing has equipment with an original cost of $850,000, accumulated amortization of $300,000 and 5 years of estimated remaining useful life. Due to a change in market conditions Melbourne now estimates that the equipment will only generate cash flows of $80,000 per year over its remaining useful life. The company's incremental borrowing rate is 8%. What is the amount of the impairment loss closest to and what would be the effect on the company's return on assets (ROA) in future periods? | Impairment
Loss | Effect on ROA in
future periods | A. | $150,000 | Increase | B. | $150,000 | Decrease | C. | $230,583 | Increase | D. | $230,583 | Decrease |
Select exactly 1 answer(s) from the following: A. Answer A. B. Answer B. C. Answer C. D. Answer D.
58、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Which of the following factors is an analyst least likely to consider when determining if a company's deferred tax liabilities should be treated as a liability or equity? Select exactly 1 answer(s) from the following: A. The growth rate of the firm. B. The average discount rate of liabilities. C. The expectation that temporary differences will reverse. D. The use of accelerated depreciation methods for tax purposes.
59、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. On January 1, 2007, Peoria Products Inc. entered into a lease agreement to lease a piece of machinery as the lessor. The annual lease payments are $50,000, due December 31, the lease term is for 5 years, the machine has an estimated useful life of 6 years, and Peoria currently records the machine on its balance sheet at its cost of $160,000. The incremental rate of the lease is 8% and they are reasonably assured of the collection of the lease payments. Which of the following best describes the classification and effect of the lease on Peoria's income statement for 2007? Select exactly 1 answer(s) from the following: A. Operating lease. Rental revenue of $50,000. B. Direct financing lease. Interest income of $15,971. C. Sales type lease. Gross profit of $39,635 plus interest income of $15,971. D. Direct financing lease. Gross profit of $39,635 plus interest income of $15,971.
60、Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted. Which of the following would be the most useful to an analyst trying to assess the credit worthiness of a company? Select exactly 1 answer(s) from the following: A. Return measures related to net income. B. Return measures related to operating cash flow. C. Information related to the scale and diversity of a company's operations. D. Information related to operational efficiency of the company's operations.
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发表于 2008-11-5 18:56
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