Q1. These account balances at December 31 relate to Sportaid, Inc.:
Accounts Payable . . . . . . . . . .$51,000 Paid-in Capital in Excess
Accounts Receivable . . . . . . . .81,550 of Par-Common . . . . . . . . . . .$270,000
Common Stock . . . . . . . . . . . . .315,000 Preferred Stock, 10%, $100 Par . . . . .82,000
Treasury Stock . . . . . . . . . . . . .5,200 Retained Earnings . . . . . . . . . . . . . . . .71,900
Bonds Payable . . . . . . . . . . . . .3,500 Notes Receivable . . . . . . . . . . . . . . . . .12,800
What is total paid-in capital for Sportaid, Inc.? (Assume that treasury stock does not reduce total paid-in capital.)
A. $667,000
B. $738,900
C. $661,800
D. $672,200
E. None of the above
Q2. Hill Company purchased a machine for $9,800 on January 1, 2016. The machine has been depreciated using the straight-line method over an eight-year life with a $800 residual value. Hill sold the machine on January 1, 2018, for $7,800. What is straight-line depreciation for the year ended December 31, 2016, and what is the book value on December 31, 2017?
What is straight-line depreciation for the year ended December 31, 2016?
What is the book value on December 31, 2017?