Ch10Greg - Page 1 of 5 Chapter 10 Graded Quiz 19/20...

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Page 1 of 5 Chapter 10 Graded Quiz – 19/20 Correct, 95% 11/14/2009 Gregory M Hernandez Your Submissions  Submissions  Grade 20.00 points possible  11/14/2009 8:53:33 AM   19.00 points  Average  19.00 points  Points Awarded 19.00 Points Missed 1.00 Percentage 95.0% 1.   Many companies use an accelerated depreciation method because: C) It yields larger depreciation expense in the early years of an asset's life. Feedback:   correct 2.   Obsolescence: B) Refers to a plant asset that is no longer useful in producing goods and services. Feedback:   correct 3.   A company purchased property for $100,000. The property included a building, a parking lot, and land. The  building was appraised at $62,000; the land at $45,000, and the parking lot at $18,000. Land should be  recorded in the accounting records with an allocated cost of: B) $ 36,000. Feedback:   $100,000 x $45,000/($62,000 + $45,000 + $18,000) = $36,000 4.   Huffington Company traded in an old delivery truck for a new one. The old truck had a cost of $75,000 and  accumulated depreciation of $60,000. The new truck had an invoice price of $125,000. Huffington was given a  $12,000 trade-in allowance on the old truck, which meant they paid $113,000 in addition to the old truck to  acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new  truck? D) $125,000 Feedback:   As the transaction has commercial substance and there is a loss on the exchange, the new asset  is recorded at its market value.
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5.   Total asset turnover is calculated by dividing: C) Net sales by average total assets. Feedback:  
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This note was uploaded on 04/24/2010 for the course ECON 12123 taught by Professor Donald during the Spring '10 term at Johnson County Community College.

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Ch10Greg - Page 1 of 5 Chapter 10 Graded Quiz 19/20...

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