Principles_of_Accounting_I_Test_3_Practice_Material_Answer_Key.docx

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Principles of Accounting I Practice TestNewTech purchases equipment costing $257,000 with a salvage value of $24,000 and a 4-yearlife.It is estimated it will produce 1,500,000 units of product.
Ramirez Company installs a computerized manufacturing machine in itsfactory at the beginning of the year at a cost of $89,000. The machine's usefullife is estimated at 10 years, or 400,000 units of product, with a $9,000salvage value. During its second year, the machine produces 64,000 units ofproduct.Annual Production (Units)Depreciation ExpenseYear 264,000$12,800
Garcia Co. owns equipment that cost $81,600 and has accumulated depreciation of 43,200.Record the sale of the equipment under the following scenariosSold for $50,600 cash

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Term
Fall
Professor
Dr Black
Tags
Depreciation, Federal Insurance Contributions Act tax, Ramirez Company

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