課程名稱︰會計學乙二上
課程教師︰葉疏
開課學院：管理學院
開課系所︰財金系
考試日期（年月日）︰97/01/15
考試時限（分鐘）：3小時
是否需發放獎勵金：是
（如未明確表示，則不予發放）
試題 :
一、 選擇題(30%)
1. Cotton Hotel Corporation recently purchased Holiday Hotel and the land
on which it is located with the plan to tear down the Holiday Hotel and
build a new luxury hotel on the site. The cost of the Holiday Hotel
should be
a. depreciated over the period from acquisition to the date the hotel is
scheduled to be torn down.
b. written off as an extraordinary loss in the year the hotel is torn down.
c. capitalized as part of the cost of the new hotel.
2. Which of the following is not a major characteristic of a plant asset?
a. Possesses physical substance
b. Acquired for resale
c. Acquired for use
d. Yields services over a number of years
3. Which of the following assets do not qualify for capitalization of interest
costs incurred during construction of the assets?
a. Assets under construction for an enterprise's own use.
b. Assets intended for sale or lease that are produced as discrete
projects.
c. Assets financed through the issuance of long-term debt.
d. Assets not currently undergoing the activities necessary to prepare them
for their intended use.
4. When computing the amount of interest cost to be capitalized, the concept
of "avoidable interest" refers to
a. the total interest cost actually incurred.
b. a cost of capital charge for stockholder' equity.
c. that portion of total interest cost which would not have been incurred
if expenditures for asset construction had not been made.
d. that portion of average accumulated expenditures on which no interest
cost was incurred.
5. Which of the following statements is true regarding capitalization of
interest?
a. Interest cost capitalized in connection with the purchase of land to be
used as a building site should be debited to the land account and not to
the building account.
b. The amount of interest cost capitalized during the period should not
exceed the actual interest cost incurred.
c. When excess borrowed funds not immediately needed for construction are
temporarily invested, any interest earned should be offset against
interest cost incurred when determining the amount of interest cost to
be capitalized.
d. The minimum amount of interest to be capitalized is determined by
multiplying a weighted average interest rate by the amount of average
accumulated expenditures on qualifying assets during the period.
6. Which of the following is not a capital expenditure?
a. Repairs that maintain an asset in operating condition
b. An addition
c. A betterment
d. A replacement
7. On August1, 2007, Tanner Corporation purchased a new machine on a deferred
payment basis. A down payment of $2,000 was made and 4 annual installments
of $6,000 each are to be made beginning on September 1, 2007. The cash
equivalent price of the machine was $23,000. Due to an employee strike,
Tanner could not install the machine immediately, and thus incurred $300
of storage costs. Costs of installation (excluding the storage costs)
amounted to $800. The amount to be capitalized as the cost of the machine
is
a. $23,000
b. $23,800
c. $24,100
d. $26,000
8. Which of the following most accurately reflects the concept of depreciation
as used in accounting?
a. The process of charging the decline in value of an economic resource to
income in the period in which the benefit occurred.
b. The process of allocating the cost of tangible assets to expense in a
systematic and rational manner to those periods expected to benefit
from the use of the asset.
c. A method of allocating asset cost to an expense account in a manner
which closely matches the physical deterioration of the tangible asset
involved.
d. An accounting concept that allocates the portion of an asset used up
during the year to the contra asset account for the purpose of properly
recording the fair market value of tangible assets.
9. Quayle Company acuired machinery on January 1, 2002 which it depreciated
under the straight-line method with an estimated life of fifteen years
and no salvage value. On January 1, 2007, Quayle estimated that the
remaining life of this machinery was six years with on salvage value. How
should this change be accounted for by Quayle?
a. As a prior period adjustment
b. As the cumulative effect of a change in accounting principle in 2007
c. By setting future annual depreciation equal to one-sixth of the bood
valu on January, 1, 2007
d. By continuing to depreciate the machinery over the original fifteen year
life
10. Of the following costs related to the development of natural resources,
which one is not a part of depletion cost?
a. Acquisition cost of the natural resource deposit
b. Exploration costs
c. Tangible equipment costs associated with machinery used to extract the
natural resource
d. Intangible development costs such as drilling costs, tunnels, and shafts
11. Costs incurred internally to create intangibles are
a. capitalized.
b. capitalized if they have an indefinite life.
c. expensed as incurred.
d. expensed only if they have a limited life.
12. Riser Corporation was granted a patent on a product on January 1, 1998. To
protect its patent, the corporation purchased on January 1, 2007 a patent
on a competing product which was originally issued on January 10, 2003.
Because of its unique plant, Riser Corporation does not feel the competing
patent can be used in producing a product. The cost of the competing patent
should be
a. amortized over a maximum period of 20 years.
b. amortized over a maximum period of 16 years.
c. amortized over a maximum period of 11 years.
d. expensed in 2007.
13. If a company construsts a laboratory building to be used as a research
and development facility, the cost of the laboratory building is matched
against earnings as
a. research and development expense in the period(s) of construction.
b. depreciation deducted as part of research and development costs.
c. depreciation or immediate write-off depending on company policy.
d. an expense at such time as productive research and development has been
obtained from the facility.
14. The general ledger of Vance Corporation as of December 31, 2007, includes
the following accounts:
Copyrights $ 20,000
Deposits with advertising agency(will be used to promote goodwill) 27,000
Discount on bonds payable 67,500
Excess of cost over fair value of identifiable net assets of
acquired subsidiary 390,000
Trademarks 90,000
In the preparation of Vance's balance sheet as of December 31, 2007, what
should be reported as total intangible assets?
a. $594,500
b. $527,000
c. $500,000
d. $460,000
15. Lopez Corp. incurred $420,000 of research and development costs to develop
a product for which a patent was granted on January 2, 2002. Legal fees and
other costs associated with registration of the patent totaled $80,000. On
March 31, 2007, Lopez paid $120,000 for legal fees in a successful defense
of the patent. The total amount capitalized for the patent through March 31
, 2007 should be
a. $200,000
b. $500,000
c. $540,000
d. $620,000
二、 計算題(70%)
1. On March,1 Gatt Co. began construction of a building in 2007. The following
expenditures were incurred for construction:
January 1 $ 75,000 April 1 $ 74,000
May 1 180,000 June 1 270,000
Dec 1 120,000
The building was completed and occupied on July 1. To help pay for
construction $50,000 was borrowed on January 1 on a 12%, three-year note
payable, and 10,000 shares of no-par common stock, was issued at $10 per
share on January 1, 2007. The other debt outstanding during the year
includes (1) a $300,000, 10% note issued two years ago, and (2) a $200,000,
14% note issued last year.
Instructions(12%)
(a) Determine the amount of interest to be capitalized in 2007 in relation
to the construction of the building.(9%)
(b) Prepare the journal entry to record the capitalization of interest and
the recognition of interest expense, if any, at December 31, 2007.(3%)
2. Edmond Company exchanged machinery with an appraised value of $1,755,000, a
recorded cost of $2,700,000 and Accumulated Depreciation of $1,350,000 with
Rosen Corporation for machinery Rosen owns. The machinery has an appraised
value of $1,695,000, a recorded cost of $3,240,000, and Accumulated
Depreciation of $1,782,000. Rosen also gave Edmond $60,000 in the exchange.
Assume depreciation has already been updated.
Instructions(18%)
(a) Prepare the entries on Edmond's book assuming that the exchange had
commercial substance. (Round all computations to the nearest dollar.)
(b) Prepare the on both companies' books assuming that the exchange lacked
commercial substance. (Round all computations to the nearest dollar.)
3. A machine cost $500,000 on April 1, 2006. Its estimated salvage value is
$ 50,000 and its expected life is eight years.
Instructions(12%)
Calculate the depreciation expense (to the nearest dollar) by each of the
following methods, showing the figures used.
(a) Straight-line for 2006
(b) Double-declining balance for 2007
(c) Sum-of-the-years'-digits for 2007
4. Chadwick Enterpriseds, Inc., operates several restaurants throughout the
Midwest. Three of its restaurants located in the center of a large urban
area have experienced declining profits due to declining population. The
company's management has decided to test the operational assets of the
restaurants for possible impairment. The relevant information for these
assets is presented below.
Book value $6.2 million
Estimated undiscounted sum of future cash flows 4.0 million
Fair value 3.5 million
Instructions(10%)
(a) Determine the amount of the impairment loss.
(b) Repeat (a) assuming that the estimated undiscounted sum of future cash
flows is $6.5 million and fair value is $5 million.
5. Fowler Manufacturing Company decided to expand further by purchasing Abel
Company. The balance sheet of Abel Company as of December 31, 2007 was as
follows:
Abel Company
Balance Sheet
December31, 2007
Assets Equities
Cash $ 210,000 Accounts payable $ 325,000
Receivables 450,000 Common stock 800,000
Inventory 275,000 Retained earnings 835,000
Plant assets(net) 1,025,000
Total assets $1,960,000 Total equities $1,960,000
An appraisal, agreed to by the parties, indicated that the fair market value
of the inventory was $350,000 and that the fair market value of the plant
assets was $1,225,000. The fair market value of the receivables is equal to
the amount reported on the balance sheet. The agreed purchase price was
$2,100,000 and this amount was paid in cash to the previous owners of Abel
Company.
Instructions(8%)
Determine the amount of goodwill(if any)implied in the purchase price of
$2,100,000. Show calculations.
6. Consider each of the items below. Place the proper letter in the blank space
provided to indicate the nature of the account or accounts to be debited
when recording each transaction using the preferred accounting treatment.
Prepayments should be recorded in balance sheet accounts. Disregard income
tax considerations unless instructed otherwise.(10%)
a. asset(s) only
b. accumulated amortization, depletion, or depreciation only
c. expense only
d. asset(s) and expense
e. some other account or combination of accounts
___(1) A motor in one of Grant Company's trucks was overhauled at a cost of
$600. It is expected that this will extend the life of the truck for
two years.
___(2) Ken Ellis and Barb Potter, maintenance repair workers, spent five
days in unloading and setting up a new $6,000 precision machine in
the plant. The wages earned in this five-day period, $480, are
recorded.
___(3) On June 1, the Colter Hotel installed a sprinkler system throughout
the building at a cost of $130,000. As a result the insurance rate
was decreased by 40%.
___(4) An improvement, which extended the life but not the usefulness of
the asset, cost $6,000.
___(5) Tinsley Company recorded the first year's interest on 6% $100,000
ten-year bonds sold a year ago at 94. The bonds were sold in order
to finance the construction of a hydroelectric plant. Six months
after the sale of the bonds, the construction of the hydroelectric
plant was completed and operations were begun. (Only cash interest,
and not discount amortization, is to be considered.)
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