The cost of an asset is $1,110,000, and its residual value is $300,000. Estimated useful life of the asset is five years. Calculate depreciation for the second year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)
A) $222,000
B) $162,000
C) $324,000
D) $266,400
An oil well cost $1,832,500 and is calculated to hold 160,000 barrels of oil. There is no residual value. Which journal entry is needed to record the expense for the extraction of 37,000 barrels of oil during the year? All 37,000 barrels were sold during the year. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
A)
Cost of Goods Sold - Oil 423,650
Accumulated Depletion - Oil 423,650
B)
Depletion Expense - Oil 423,650
Oil Revenue 423,650
C)
Depletion Expense - Oil 423,650
Accumulated Depletion - Oil 423,650
D)
Oil Reserve Inventory 423,650
Accumulated Depletion - Oil 423,650
Equipment was acquired for $210,000 and has accumulated depreciation of$93,000. The business exchanges this equipment for new equipment. The new equipment has a market value of $304,000 and the business pays $52,000 cash. Assume the exchange has commercial substance. The exchange results in ________.
A) loss $135,000
B) gain $187,000
C) gain $135,000
D) loss $187,000
On April 1, 2017, Planet Services received $8,000 in advance of performing the services from a customer for three months of service - April, May and June. What would be the journal entry to adjust the accounts at the end of May?
A) Debit Service Revenue $2,667, and credit Unearned Revenue $2,667.
B) Debit Unearned Revenue $5,333, and credit Service Revenue $5,333.
C) Debit Unearned Revenue $8,000, and credit Service Revenue $8,000.
D) Debit Service Revenue $5,333, and credit Accounts Receivable $5,333.
Aaron earns $24.00 per hour with time-and-a-half for hours in excess of 40 per week. He worked 50 hours at his job during the first week of March 2017. Aaron pays income taxes at 15% and 7.65% for OASDI and Medicare. All of his income is taxable under FICA. Determine Aaron's net pay for the week.
A) $1,122.00
B) $1,021.02
C) $835.80
D) $799.80