Practice final BBUS3211_SW2_PE_10JUL12


Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ase $20,000. 3. In preparing its cash flow statement for the year ended December 31, 2011, Red Co. gathered the following data: In its December 31, 2011, statement of cash flows, what amount should Red report as net cash outflows from investing activities? a. $340,000 b. $352,000 c. $376,000 d. $388,000 TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 4. 3 of 13 Lundholm Company purchased a machine for $100,000 on January 1, 2009. Lundholm depreciates machines of this type by the straight‐line method over a ten‐year period using no salvage value. Due to a change in sales patterns, on January 1, 2011, management determines the useful life of the machine to be a total of six years. What amount should Lundholm record for depreciation expense for 2011? The tax rate is 40%. a. $20,000 b. $16,000 c. $17,778 d. $26,667 5. An item that should be reported as a prior period adjustment is the: a. Correction of an error in depreciation from last year. b. Payment of taxes due to a tax audit of last year’s tax return. c. Collection of a previously written off ba...
View Full Document

This note was uploaded on 02/05/2014 for the course BUS 370 taught by Professor Andreathomas during the Spring '13 term at Capital University.

Ask a homework question - tutors are online