A company should depreciate a long-lived tangible asset to:
A. decrease the total value of its assets, so that it can justify buying new ones.
B. match part of the cost of the asset with the revenues generated by the asset.
C. report less income and pay less income tax.
D. record the decrease in the market value of the asset as it gets older.
Answer: B
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Exhibit 15-1 Hanson Co issued 10,000 shares of its $5 par common stock for $15 a share. In addition, it incurred legal and accounting fees, stock certificate costs, and other related expenses totaling $18,500. ? Refer to Exhibit 15-1. Assume the sale occurred after the initial issuance at incorporation. The entry to record the sale and related expenses would include a
A) credit to Additional Paid-in Capital on Common Stock for $81,500. B) credit to Organization Expense for $18,500. C) credit to Common Stock for $150,000. D) debit to Cash for $150,000.
Inger Associates, which manufactures plastic containers, recently sold 12,000 containers to R&A Inc. The selling price per container was $18. R&A paid for the containers by transferring 864 shares of its common stock to Inger. On date of payment, R&A stock was selling on Nasdaq at $250 per share. Compute Inger's tax basis in the R&A stock.
A. Inger's tax basis equals its manufacturing cost of the 12,000 containers. B. $216,000. C. -0-. D. None of the above
A gift of $100,000 to a named beneficiary is an example of a general gift
Indicate whether the statement is true or false
In ________ encounters, the tangible evidence of the service and the quality of the technical processes and systems are the primary bases for judging quality.
A. Technology-mediated B. Detached C. Public D. Remote E. Collective