On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which of the following statements is true regarding the financial statement effects of this expenditure?
A. Retained earnings decreases
B. Book value of machine decreases
C. Retained earnings increases
D. Book value of machine increases
Answer: D
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The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?
a. 10,000 b. 40,000 c. 30,000 d. 50,000
Discuss the liability of a principal for the agent's commission of a crime.
What will be an ideal response?
The production combination of 450 bags of lime and 800 bags of vinegar is not feasible because one resource is exceeded. Which resource is exceeded and how much more is needed to produce this combination?
What will be an ideal response?
A discontinued operation refers to:
A. The sale or disposal of a significant component of a company's operations. B. Inventory items that have been completed and sold. C. Discontinued inventory items. D. The sale of most long-term assets.