On February 1, 2016, Vermont Corp pays $50,000 for shares of Stream, Inc common stock and another $1,000 in commissions. Assume that Vermont sells the Stream stock on May 20, 2016, for $53,000 . In this case, Vermont recognizes
a. An increase in assets and stockholders' equity for $2,000.
b. An decrease in assets and an increase in stockholders' equity for $2,000.
c. An increase and decrease in assets by the same amount.
d. An increase in assets and stockholders' equity for $3,000.
a
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The Bromley Company purchased a tooling machine in 2004 for $120,000 . The machine was being depreciated on the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2014, when the machine had been in use for ten years, the company paid $20,000 to overhaul the machine. As a result of this improvement, the company estimated that the useful life
of the machine would be extended an additional five years. What would be the depreciation expense recorded for the machine in 2014? a. $4,000 b. $5,333 c. $6,000 d. $7,333
In an inflationary environment, the use of which of the following cost flow methods would result in the least tax liability for the firm in the current period?
a. LIFO b. Weighted average cost c. FIFO d. Moving average cost
Which of the following entities does the ECPA permit to access stored electronic communication?
A) law enforcement entities performing an investigation B) the owner of the website where the user has an e-mail account C) the Internet service provider D) the bank where an account holder keeps his finances
To cope with the skills gap, more and more companies are hiring individuals based on the degrees they hold rather than based on the skills they have.
Answer the following statement true (T) or false (F)