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

Assignment - review of current accounting issuestask -in

Assignment - Review of Current Accounting Issues Task - In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues a ...

Question list the penalties imposed on the employer for the

Question: List the penalties imposed on the employer for the following: a. Filing Form 941 late. b. Seven days late making a deposit. c. Issuing a bad check to the IRS.

Problem 1a two four-year-old companies are identical in all

Problem 1: a. Two four-year-old companies are identical in all respects except that Company A has used straight-line depreciation exclusively since inception while Company B has used double-declining balance depreciation ...

Printing and distribution of invoices does not constitute

Printing and distribution of invoices does not constitute an increase in economic resources. On the other hand, can you give examples of what should be included in REA diagram? Remember that REA specifies the domain rule ...

Accounting principles assignment-q1 smith catering service

Accounting Principles Assignment- Q1. Smith Catering Service completed the following transactions during its first month of operations for July 2016: a. Smith Catering Service commenced operations by receiving $12000 cas ...

I need help with a t-chart account with the following1

I need help with a T-Chart Account with the following: 1. Received $10,000 contribution from Bill London, owner, in exchange for capital. 2. Paid utilities expense of $400. 3. Paid the liability from July 5 (Purchased eq ...

Rauacutel esparza the ecommerce manager for moonlight mugs

Raúl Esparza, the ecommerce manager for Moonlight Mugs, a company that sells customized coffee mugs, would like to send information to another company that maintains the warehouse and provides shipping services. Order in ...

Note answer each question completely by supporting

Note: Answer each question completely by supporting conclusions, but do so in a clear and concise manner. I am looking for your explanation 'in your words'; not another authors summary. Therefore, excessive citing of mat ...

Practice questionsdescribe the treatment of administration

Practice questions: Describe the treatment of administration, selling and distribution overheads in calculating total unit cost.

Estimating cash flowsassume that your company is

Estimating Cash Flows Assume that your company is considering the replacement of an automated milling machine with one of the new machines offered by three different manufacturers. Each of the three machines under consid ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate