Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. On July 1, 2007, Hernandez Corporation boughtfactory equipment for $300,000. Salvage value was evaluated to be $8,000. Equipment will be depreciated over ten years by using double-declining balance method. Counting the year of acquisition as one-half year, Hernandez must record depreciation expense for 2008 on this equipment of

a. $60,000.

b. $54,000.

c. $52,560.

d. $48,000.

2. Plant asset has cost of $48,000 and a salvage value of $12,000. Asset has three-year life. If depreciation in third year amounted to $6,000, which depreciation method was used?

a. Straight-line

b. Declining-balance

c. Sum-of-the-years'-digits

d. Cannot tell from information given

3. On January 1, 2007, Accumulated Depreciation Machinery account of particular company illustrated a balance of $740,000. At the end of 2007, after the adjusting entries were posted, it showed a balance of $790,000. During 2007, one of the machines which cost $250,000 was sold for $121,000 cash. This resulted in loss of $8,000. Suppose that no other assets were disposed of during the year, how much was depreciation expense for 2007?

a. $171,000

b. $187,000

c. $50,000

d. $121,000

4. Mintz Company obtained a tract of land containing an extractable natural resource. Mintz is needed by purchase contract to restore land to condition suitable for recreational use after it has extracted the natural resource. Geological surveys evaluate that recoverable reserves will be 4,000,000 tons, and that land will have a value of $1,000,000 after restoration. Relevant cost information follows:

Land $7,000,000
Estimated restoration costs $1,500,000

If Mintz maintains no inventories of extracted material, what must be the charge to depletion expense per ton of extracted material?

a. $2.13

b. $1.88

c. $1.76

d. $1.50

5. Net income is understated if, in first year, evaluated salvage value is excluded from depreciation computation when using:

  Straight-line Method  Production or Use Method 
a.  Yes  No 
b.  Yes  Yes 
c.  No  No 
d.  No  Yes 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M922578

Have any Question? 


Related Questions in Accounting Basics

Question 1with respect to transferability of ownership

Question 1 With respect to transferability of ownership interests, a sole proprietor may: not transfer her interests may only transfer her interest with approval of the state freely transfer her interests transfer her in ...

Waupaca company establishes a 480 petty cash fund on

Waupaca Company establishes a $480 petty cash fund on September 9. On September 30, the fund shows $211 in cash along with receipts for the following expenditures: transportation-in, $51; postage expenses, $65; and misce ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

Accountingcase to assess assurance of learning goal ethical

Accounting Case to assess Assurance of Learning Goal (Ethical Perspectives) Michael Greer is the Marketing Vice President for Atlantic Lubricants headquartered in Boston with extensive operations in New York City that se ...

Indeed it can be said that newspapers are facing tough

Indeed it can be said that newspapers are facing tough times, and yes, the Internet can offer many things that papers cannot. Even so, the death of newspapers has been predicted by many for decades. Radio, TV and now the ...

Review the provisions of the sarbanes-oxley act of 2002 to

Review the provisions of the Sarbanes-Oxley Act of 2002 to address the accounting scandals in the late 1990s and early 2000s (Enron, WorldCom, etc.). Identify the provisions that you believe made the most significant imp ...

Question 2-64start from the trial balance and the posted

Question 2-64 Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18, as follows HAUPT CONSULTING Trial Balance December 18, 2010 Balance Account Tide Debit Credit Cash $7,70 ...

Using what youve learned from this phase compare accrual

Using what you've learned from this phase, compare accrual accounting to cash flow accounting. Discuss the strengths as weaknesses of each. Consider how each accounting system impacts a company's strategy formation and t ...

Accounting information systems1 you have been asked by the

Accounting Information Systems 1. You have been asked by the CFO of the company where you work or previously worked to evaluate the use of a professional service organization for processing the company's payroll. Identif ...

Assignmentthis assignment has 2 parts 1000 10 word theory

Assignment This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory. The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sur ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen