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Capital University Questions & Answers
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- On January 1, 2021 a company purchased an asset for $550,000. The retirement costs at the end of the useful life of 20 years are estimated to be $110,000. The
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- A company began operations on January 1, 2020. Purchases of property, plant and equipment during 2020 was as follows: Cost Residual Value Jan 1, 2020 Land 1
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- Fashion Inc. uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following information pertains to the
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- Emily Ltd. prepares monthly financial statements. Inventory is counted only at year end; thus, month end inventories must be estimated. All sales are made on
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- Furniture Co sells merchandise for $88,000 on January 1, 2021. The customer paid $20,000 cash and issued a note for the remainder. The principal will be due in
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- Company A sold inventory on January 2, 2021 on the following terms: Interest of 3% payable on December 31 of each year for four years with the principal amount
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- A factory makes canned tomatoes. These cans are sold to various grocery store chains under their respective generic-brands. Current capacity if 40 million
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- A manufacturer of medium sized aircraft is considering building a larger aircraft. Currently the market for large aircraft is a duopoly of Boeing and Airbus.
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