On January 1, Year 1, Phillips Company made a basket purchase including land, a building and equipment for $380,000. The appraised values of the assets are $20,000 for the land, $340,000 for the building and $40,000 for equipment. Phillips uses the double-declining-balance method for the equipment which is estimated to have a useful life of four years and a salvage value of $5,000. What is the depreciation expense for the equipment for Year 1?

Which of the following statements about Treasury Stock is correct?

Chico Company paid $670,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $195,000; Building, $570,000; and Land, $165,000. Based on this information, what is the cost that should be allocated to the office furniture?Note: Round intermediate percentage values to a whole percentage.

Blain Company has $20,000 of accounts receivable that are current, $10,000 that are between 0 and 30 days past due, $6,000 that are between 30 and 60 days past due, and $1,600 that are more than 60 days past due. Blain estimates that 2% of the receivables that are current will be uncollectible, 5% of those between 0 and 30 days past due will be uncollectible, 10% of those between 30 and 60 days past due will be uncollectible, and 50% of those more than 60 days past due will be uncollectible. Just prior to recognizing uncollectible accounts expense, Blain’s allowance for doubtful accounts has a $200 positive balance. Assuming Blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be

Watt Company was established in January, Year 1. During Year 1 the company experienced the following events.Collected $7,200 cash from the issue of common stock.Borrowed $4,200 cash from the state bank.Earned $5,200 of cash revenue.Paid $3,200 cash expenses.The company was liquidated at the end of Year 1. Based on this information

Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock. After the purchase of treasury stock, the number of outstanding shares of common stock was which of the following?

Which of the following is not a common internal control procedure over cash payments?

Napoli Industries had net income for Year 2 of $650,000. Napoli had an average number of shares outstanding at the end of the year of 500,000 shares. On January 1, Year 2, the market price of Napoli’s stock was $20 per share. On December 31, Year 2, the market price was $22 per share. What is the price-earnings ratio for Napoli at the end of Year 2?

GreyCo has initiated a lawsuit against PhilCo for a copyright violation. Negotiations between the lawyers representing the two companies suggest that it is probable that GreyCo will win the case and will collect a $1,001,100 settlement fee. Generally Accepted Accounting Principles (GAAP):

Flagler Corporation shows a total of $700,000 in its Common Stock account and $700,000 in its Paid-in Capital Excess account. The par value of Flagler’s common stock is $7. How many shares of Flagler stock have been issued?