Acct 120B Midterm 1 Answer

Acct 120B Midterm 1 Answer - Midterm 1 h Net realizable...

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Midterm 1 h Net realizable value is Answer Selected Answer: selling price. Correct Answer: selling price less costs to complete and sell.
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Midterm 1 Question 2 0 out of 4 points Klein Co. purchased machinery on January 2, 2001, for $440,000. The straight-line method is used and useful life is estimated to be 10 years, with a $40,000 salvage value. At the beginning of 2007 Klein spent $96,000 to overhaul the machinery. After the overhaul, Klein estimated that the useful life would be extended 4 years (14 years total), and the salvage value would be $20,000. The depreciation expense for 2007 should be Answer Selected Answer: Correct Answer: Question 3 4 out of 4 points Ramon Company incurred the following costs during 2010 in connection with its research and development activities. projects over the next 5 years (uses straight-line depreciation). $396,540 55,234 104,100
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Midterm 1 122,300 52,341 30,257 Compute the amount to be reported as research and development expense by the company on its income statement for 2010. Assume equipment is purchased at beginning of year. Answer Selected Answer: Correct Answer: Question 4 4 out of 4 points A major advantage of the retail inventory method is that it Answer Selected Answer: Correct Answer:
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Midterm 1 Question 5 4 out of 4 points Which of the following is not a basic assumption of the gross profit method? Answer Selected Answer: Correct Answer: Question 6 0 out of 4 points ELO Corporation purchased a patent for $180,000 on September 1, 2006. It had a useful life of 10 years. On January 1, 2008, ELO spent $44,000 to successfully defend the patent in a lawsuit. ELO feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2008? Answer
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This note was uploaded on 08/28/2011 for the course ACCOUNTING 423 taught by Professor K during the Spring '11 term at San Diego.

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Acct 120B Midterm 1 Answer - Midterm 1 h Net realizable...

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