Depreciation of an asset based on the number of hours of usage is a(n)
A) time-based method
B) accelerated method
C) replacement method
D) activity-based method
D
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The receivable turnover and inventory turnover ratios are used to analyze
a. leverage. b. long-term solvency. c. profitability. d. liquidity.
The Health Care Reform Act prohibits insurers from establishing an annual spending cap for benefit payments
Indicate whether the statement is true or false
For every unit of machine sold, the salespeople at Carlipis, a machinery manufacturer, are paid an amount of money over and above their salary. Given this information, the salespeople at Carlipis most likely received _____.
A. perquisites B. wages C. gratuities D. commissions
Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.If Goehler applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?
A. $1,100,000. B. $1,468,000. C. $1,475,000. D. $1,080,000. E. $1,104,000.