chapter10a

chapter10a - Chapter 10 1. Erin Danielle Company purchased...

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Chapter 10 1. Erin Danielle Company purchased equipment and incurred the following costs. Cash price $24,000 Sales taxes 1,200 Insurance during transit 200 Installation and testing 400 Total costs $25,800 What amount should be recorded as the cost of the equipment? A. $24, 000. B. $25, 200. C. $25, 400. D. $25, 800. 2. Depreciation is a process of: A. valu ation . B. cost alloc ation . C. cash accu mula tion. D. appr aisal. 3. Micah Bartlett Company purchased equipment on January 1, 2007, at a total invoice cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2008, if the straight-line method of depreciation is used, is:
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A. $80, 000. B. $160 ,000. C.
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chapter10a - Chapter 10 1. Erin Danielle Company purchased...

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