Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.

Expensed or Capitalized	Asset Category
_____	_____	1. Wages paid to train employees to use new equipment.
_____	_____	2. Invoice cost paid for new equipment.
_____	_____	3. Early payment discount taken on the purchase of new equipment.
_____	_____	4. Realtor commissions incurred on land purchased.
_____	_____	5. Property taxes on land incurred after it was purchased.
_____	_____	6. Costs of oil for the truck used to deliver new equipment.
_____	_____	7. Costs to lay foundation for a new building.
_____	_____	8. Insurance on a new building during its construction.

Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be included in plant assets, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.

$$\begin{matrix} \text{Expensed or Capitalized} & \text{Asset Category}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{1. Charges incurred to train employees to use new equipment}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{2. Invoice cost to purchase new equipment}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{3. Deduction for an early payment discount taken on the purchase of new equipment}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{4. Real estate commissions incurred on land purchased for a new plant}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{5. Property taxes on land incurred after it was purchased}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{6. Costs of tune-up for the truck used to deliver new equipment}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{7. Costs to lay foundation for a new building}\\ \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_} & \text{8. Insurance on a new building during the construction phase}\\ \end{matrix}$$

Tisdale Incorporated reports the following amount in its December 31, 2018, income statement.

$$\begin{array}{ll}{\text { Sales revenue }} & {\$ 300,000} \\ {\text { Nonoperating revenue }} & {110,000} \\ {\text { Selling expenses }} & {60,000} \\ {\text { General expenses }} & {50,000}\end{array} \begin{array}{ll}{\text { Income tax expense }} & {\$ 30,000} \\ {\text { Cost of goods sold }} & {190,000} \\ {\text { Administrative expenses }} & {40,000}\end{array}$$

1. Prepare a multiple-step income statement. 2. Explain how analyzing the multiple levels of profitability can help in understanding the future profit-generating potential of Tisdale Incorporated.

Aneko Company reports the following: net sales of $14,800 for Year 2 and$13,990 for Year 1; end-of-year total assets of $19,100 for Year 2 and$17,900 for Year 1.

1. Compute total asset turnover for Year 2.
2. Aneko's competitor has a turnover of 2.0. Is Aneko performing better or worse than its competitor based on total asset turnover?

Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The company pays$33,500 to tear down an old building on the lot and $47,000 to fill and level the lot. It also pays construction costs of$1,452,200 for the new building and $87,800 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Aneko Company reports the following ($000s): net sales of$14,800 for 2017 and $13,990 for 2016; endof-year total assets of$19,100 for 2017 and $17,900 for 2016. Compute its total asset turnover for 2017, and assess its level if competitors average a total asset turnover of 2.0 times.

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5.000 to start each quarter.$

$$\begin{matrix} \text{ } & \text{Quarter}\\ \text{ } & \text{1} & \text{2} & \text{3} & \text{4} & \text{Year}\\ \text{Cash balance, beginning} & \text{\$ 6} & \text{\$ ?} & \text{\$ ?} & \text{\$ ?} & \text{\$ ?}\\ \text{Add collections from customers} & \text{?} & \text{?} & \text{96} & \text{?} & \text{323}\\ \text{Total cash available} & \text{71} & \text{?} & \text{?} & \text{?} & \text{?}\\ \text{Less disbursements:}\\ \text{Purchase of inventory} & \text{35} & \text{45} & \text{?} & \text{35} & \text{?}\\ \text{Selling and administrative expenses} & \text{?} & \text{30} & \text{30} & \text{?} & \text{113}\\ \text{Equipment purchases} & \text{8} & \text{8} & \text{10} & \text{?} & \text{36}\\ \text{Dividends} & \text{2} & \text{2} & \text{2} & \text{2} & \text{?}\\ \text{Total disbursements} & \text{?} & \text{85} & \text{?} & \text{?} & \text{?}\\ \text{Excess (deficiency) of cash available over disbursements} & \text{(2)} & \text{?} & \text{11} & \text{?} & \text{?}\\ \text{Financing:}\\ \text{Borrowings} & \text{?} & \text{15} & \text{\_\_} & \text{\_\_} & \text{?}\\ \text{Repayments (including interest)} & \text{))} & \text{))} & \text{(?)} & \text{(17)} & \text{(?)}\\ \text{Total financing} & \text{?} & \text{?} & \text{?} & \text{?} & \text{?}\\ \text{Cash balance, ending} & \text{\$ ?} & \text{\$ ?} & \text{\$ ?} & \text{\$ ?} & \text{\$ ?}\\ \end{matrix}$$

$ Fill in the missing amounts in the above table.

Explain the concept of a big bath and why restructuring costs are often identified with this event.

Describe the tooling and equipment that would be necessary to perform the double-lock seaming operation shown, starting with a thin, flat sheet.

Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs$20,000. Additional costs are $4,000 for delivery and$13,700 for sales tax. During the installation, a component of the equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,850. Compute the total recorded cost of the automatic scorekeeping equipment.

Perez Company acquires an ore mine at a cost of $\$ 1,400,000$. It incurs additional costs of $\$ 400,000$ to access the mine, which is estimated to hold $1,000,000$ tons of ore. The estimated value of the land after the ore is removed is $\$ 200,000$.

1. Prepare the entry(ies) to record the cost of the ore mine.
2. Prepare the year-end adjusting entry if 180,000 tons of ore are mined and sold the first year.

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows:$

$$\begin{matrix} \text{ } & \text{Book Value} & \text{Fair Value}\\ \hline \text{Current assets} & \text{$\$ 11,400,000$} & \text{$\$ 14,400,000$}\\ \text{Property, plant, and equipment} & \text{$20,200,000$} & \text{$26,200,000$}\\ \text{Other assets} & \text{$3,400,000$} & \text{$4,400,000$}\\ \text{Current liabilities} & \text{$7,800,000$} & \text{$7,800,000$}\\ \text{Long-term liabilities} & \text{$13,200,000$} & \text{$12,200,000$}\\ \end{matrix}$$

$ Calculate the amount paid for goodwill.

Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs$20,000. Additional costs are $4,000 for delivery and$13,700 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,850. What is the total recorded cost of the scorekeeping equipment?

Listed below are costs of providing an airline service. Classify each cost as (a) either variable (V) or fixed (F), and (b) either direct (D) or indirect (I). Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time.

$$\begin{matrix} \text{Cost} & \text{a. Variable or Fixed} & \text{b. Direct or Indirect}\\ \text{1. Advertising} \ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{2. Beverages and snacks} \ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{3. Regional vice president salary}\ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{4. Depreciation (straight-line) on ground equipment}\ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{5. Fuel and oil used in planes} \ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{6. Flight attendant wages} \ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{7. Pilot wages}\ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{8. Aircraft maintenance manager salary}\ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \text{9. Customer service salaries} \ldots\ldots\ldots & \text{\_\_\_\_\_\_\_} & \text{\_\_\_\_\_\_\_}\\ \end{matrix}$$