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

Culturally diverse individuals are effective workerssuppose

Culturally Diverse Individuals Are Effective Workers Suppose you work as a human resource (HR) executive at Total Solutions, Inc., a culturally and geographically diverse organization. A recent government study on human ...

Account assignmentlets use this discussion to study bonds

Account Assignment Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $10,000.000 with a contractual (stated) interest ra ...

Mnc paper and presentationgoogle company paper and

MNC Paper and Presentation: GOOGLE COMPANY Paper and Presentation will consist of research to write a paper on an annual SEC 10-K report filed by a public multinational corporation with the U.S. Securities and Exchange C ...

Question 1abc inc has estimated the following revenues and

Question 1 ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $5,081,953, total cash expenses $3,212,751, depreciation $623,167, taxes 33% ...

Palmona co establishes a 220 petty cash fund on january 1

Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $125 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $11; delivery expenses, $13; and ...

Part 1problem 2aagrichem industries manufactures fertilizer

Part 1 PROBLEM 2A AgriChem Industries manufactures fertilizer concentrate and uses cost standards. The fertilizer is produced in 500-pound batches; the normal level of production is 250 batches of fertilizer per month. T ...

Careers in accountingaccounting is the study of how

Careers in Accounting Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

Question 1the following transactions occurred during july o

Question 1 The following transactions occurred during July: o Received $900 cash for services provided to a customer during July. o Received $2,200 cash investment from Barbara Hanson, the owner of the business. o Receiv ...

Standard prices for medicineread the article magic pill

Standard Prices for Medicine Read the article, "Magic Pill, Magical Accounting." Based on the content presented in the article, describe some of the issues with not having an industry-wide standard price for a medicine. ...

Exercise recording receivables and identifying their effect

Exercise: Recording receivables and identifying their effect on financial statements Davos Company performed services on account for $160,000 in 2016. Davos collected $120,000 cash from accounts receivable during 2016, a ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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