A retail store using sum-of-the-years-digits method of depreciation purchased equipment costing $36,00 . and put it use on June 1 . The equipment is expected to have a useful life of 10 years and an estimated resale value of $2,400 . Compute the depreciation expense for June 1 through December 31 of the first year and all 12 months of the second year


$9,316

Business

You might also like to view...

Most job refusal letters ________

A) use the indirect strategy B) give concrete reasons for not hiring the candidate C) provide as much information as possible D) mention the name of the person who was hired for the position

Business

Krech Corporation's comparative balance sheet appears below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets:      Current assets:        Cash and cash equivalents$31,000 $28,000   Accounts receivable 18,000  20,000   Inventory 58,000  56,000   Prepaid expenses 12,000  10,000 Total current assets 119,000  114,000 Property, plant, and equipment 374,000  354,000   Less accumulated depreciation 190,000  165,000 Net property, plant, and equipment 184,000  189,000 Total assets$ 303,000 $ 303,000 Liabilities and stockholders' equity:      Current liabilities:        Accounts payable$13,000 $9,000   Accrued liabilities 52,000  53,000   Income taxes payable 67,000  69,000 Total current

liabilities 132,000  131,000 Bonds payable 76,000  73,000 Total liabilities 208,000  204,000 Stockholders' equity:        Common stock 28,000  26,000   Retained earnings 67,000  73,000 Total stockholders' equity 95,000  99,000 Total liabilities and stockholders' equity$ 303,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.Which of the following is correct regarding the operating activities section of the statement of cash flows? A. The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income B. The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income C. The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income D. The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income

Business

A retirement benefit plan that is integrated with the employer’s contribution to Social Security on behalf of the participant is referred to as a(n)

A. integrated plan. B. Social Security plan. C. combination plan. D. welfare benefit plan.

Business

Candy bought a sofa from Max on credit. She is to make 5 monthly payments of $200 each. After one month Candy stops making payments. Max is a secured creditor; he may:

a. may enter Candy's home at any time to take the sofa b. take steps to repossess the sofa from Candy c. require Candy to perform manual labor in exchange for the cash payments d. force Candy to turn over the sofa plus other property to make up for Max's time and efforts spent on collection e. do none of these things, Max is not an unsecured creditor

Business