Answer Derivation

82. c ($300,000 × 12/12) + ($900,000 × 4/12) + ($900,000 × 0/12) = $600,000.

83. b $600,000 (from # 82) × 12% = $72,000.

84. d [($300,000 + $900,000 + $900,000 + $72,000) × 9/12] + ($900,000 × 6/12) +

($600,000 × 0/12) = $2,079,000.

85. b $1,650,000 × 12% × 9/12 = $148,500;

($2,172,000 × 9/12) + ($900,000 × 6/12) = $2,079,000;
[($2,079,000 – $1,650,000) × 9% × 9/12] + $148,500 = $177,458.

86. b ($4,000,000 × 10/12) + ($3,300,000 × 7/12) + ($5,000,000 × 0/12) = $5,258,333.

87. d [($4,000,000 × .10) + ($7,500,000 × .11)] ÷ ($4,000,000 + $7,500,000) = 10.65%.

88. d $2,000,000 × 12% = $240,000;

($4,000,000 × 10/12) + ($3,300,000 × 7/12) = $5,258,333;
[($5,258,333 – $2,000,000) × 10.65%] + $240,000 = $587,012.

89. a ($2,000,000 × .12) + ($4,000,000 × .10) + ($7,500,000 × .11) = $1,465,000.

90. c ($2,000,000 × .12) + ($4,000,000 × .10) + ($7,500,000 × .11) = $1,465,000;

[($5,258,333 – $2,000,000) × 10.65%] + $2,000,000 × .12 = $587,012.
$1,465,000 – $587,012 = $877,987.

91. a Equipment = $120,000 + $16,000; Loss: $142,000 – $120,000 = 22,000.

92. a $225,000 + $45,000 = $270,000.

93. c $135,000 + $21,000 = $156,000; $135,000 – $150,000 = $15,000.

94. b $48,000 + $16,000 = $64,000.

95. a $60,000 (fair value).

96. c $240,000 – $225,000 = $15,000; $180,000 (fair value).

97. a [$1,700,000 ÷ ($950,000 + $1,400,000 + $1,050,000 + $1,700,000)] × $2,800,000 =

$933,333.

98. d [$1,400,000 ÷ ($950,000 + $1,400,000 + $1,050,000 + $1,700,000)] × $2,800,000 =

$768,627.

99. c (3,000 × $50) – $9,000 = $141,000.

100. c $34,800 + $600 = $35,400.

101. c ($45,000 × .85 × .98) + $600 + $450 = $38,535.

 DERIVATIONS — Computational (cont.)
No. Answer Derivation
102. b $36,000 + $1,500 = $37,500.

103. d Land: 60/180 × $1,710,000 = $570,000.

Warehouse: 40/180 × $1,710,000 = $380,000.
Office Building: 80/180 × $1,710,000 = $760,000.

104. b $69,000 + $2,400 = $71,400.

105. d $34,800 – $30,000 = $4,800 (gain).

106. b Fair value of new truck = $54,000.

Loss: ($54,000 – $45,000) – $12,000 = ($3,000).
New Machine: $12,000 + $45,000 – $3,000 = $54,000.

107. c $28,000 + $91,000 = $119,000.

108. b $82,500 – ($360,000 – $285,000) = $7,500.

109. d $322,500 + $82,500 = $405,000.

$16,000
110. a $16,000  $64,000 × $32,000 = $6,400.

111. d $64,000 – ($32,000 – $6,400) = $38,400.

$90,000
112. b $90,000  $630,000 × $144,000 = $18,000.

113. a $630,000 – ($144,000 – $18,000) = $504,000 or

 $90,000 
$576,000   x $576,000   $504,000.
 $720,000 

114. b $360,000 + $90,000 = $450,000

or $720,000 – ($630,000 – $360,000) = $450,000.

115. b ($400,000 – $240,000) × [$40,000 ÷ ($40,000 + $360,000)] = $16,000.

116. d $540,000 – $570,000 = ($30,000).

117. b ($900,000 – $540,000) × [$90,000 ÷ ($90,000 + $810,000)] = $36,000.

118. d $540,000 – $570,000 = ($30,000).

119. c [($480,000 – $30,000) ÷ 5] × 4 1/3 = $390,000

($480,000 – $390,000) + $9,000 = $99,000.
 DERIVATIONS — Computational (cont.)
No. Answer Derivation
120. c [($640,000 – $40,000) ÷ 5] × 4 1/3 = $520,000
($640,000 – $520,000) + $12,000 = $132,000.

121. b ($264,000 – $12,000) ÷ (10 × 12) = $2,100 per month

$36,000 – [$264,000 – ($2,100 × 106 mo.)] = –$5,400.

122. b ($304,000 – $16,000) ÷ (10 × 12) = $2,400/mo.;

$56,000 – [$304,000 – ($2,400 × 108)] = $11,200.

DERIVATIONS — CPA Adapted

No. Answer Derivation
123. c $900,000 + $70,000 + $10,000 + $16,000 – $8,000 = $988,000.

124. b Conceptual.

125. b Conceptual.

126. a ($7,200,000 – $600,000) – $4,800,000 = $1,800,000 (deferred gain)

$7,200,000 – $1,800,000 = $5,400,000 (Basis).

127. a Conceptual.

128. b Conceptual.

129. d $65,000 + $5,000 + $18,000 + $7,000 = $95,000.

130. a $170,000 + $20,000 = $190,000.