{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Korr company shouid make no adjustments to the

Info iconThis preview shows pages 7–9. Sign up to view the full content.

View Full Document Right Arrow Icon
korr. company shouid make no adjustments to the inventory account. j,our company should adjust the inventory account using the lower of the recent "market values, which is $15. Your company should adjust the inventory account using the higher of the recent market values, which is $16.50. your company shouid adjust the inventory account using the average of the recent market values. which is $14.50. t{ rii\ [ \t gffitfu Merchandising purchased goods on account fiom Nemo Incorporated. The goods were purchased FOB degtiBgf,io,n for $200. How would these freight charges be recorded in Sebastian', u..ooo?rrSffcords assuming that the company uses a perpetual jqventory system? (S) fn.V would not be included in Sebastian's accounting records B) Debit freigtrt-expense C) Debit freight-out . D) Debit inventory The main difference between ordinary repairs and extraordinary repairs is: A) ordinarv repairs cost less. ffrl, ordinary .epuirs are expenditures for routine maintenance and upkeep, whereas u extraoriinary repairs increase an assets economic usefulness in the future through increased efficiency, capacrty, or longer life. C) extraordinary repairs oniy maintain the asset for a short time, whereas ordinary repaks increase the usefulness of assets beyond their original condition' D) extraordinary repairs are expenditures. not expenses' 37. 38.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
trlt0 o0o - lLttooo , L?-ba$fl Trash Hauling has a fleet of 10 large trucks that cost a total of $1,410,000. The fleet is expected to piovide 1,000,000 miies of transportation during an estimated l0-Vear life, *d b" soid ior,lL7-a of ttre original cost at the end of that time. If the fleet travG1Eff- 125,000 miles in the current twelve-month period, what would be the depreciation exp€nse under the-sffiiine (SL) in year 1 and remaining years? A) SL: $141,000 and the same amount in subsequent firll years of service j( SL : $14i,000 and the different amounts in subsequent full years of service fO) SI. : $126,900 and the same amount in subsequent full years of service Y ,t: $tZO,qOO and the different amounts in subsequent fullyears of service iation account at the end L0 4" lHtOOoo' tV( c^-e {$} 44. Which of the following statements most appropriately describes the purpose of depreciating a long-lived tangibie asset? A) To indicate how the asset has physically deteriorated. B) To show that the asset will eventually and gradually become obsolete. C) To record that the asset's market value declines over time. fli\fo match the cost of &e asset to the period in which it generates revenue. LJ Shaggy Limited purchased a new van on January 1,2010. The van cost $20,000. It has an estimated life of five years and the estimated residual value is $5,000. Shaggy uses the straight line method to compute depreciation. adjusted balance in the $3,000 $6,000 $9,000. $8,000 $12,000 A trucking company sold its fleet of trucks for $55,000. The trucks had originally cost $1,410,000 and had accumulated depreciation of $1,269,000 through the date of disposal.
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}