[The following information applies to the questions displayed below.]On January 1, Year 1, Jing Company purchased office equipment that cost $34,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,000. The equipment had a five-year useful life and a $12,000 expected salvage value.At the end of Year 5, the equipment was still owned by Jing Company. What is the book value of the office equipment using the straight-line method and double-declining-balance method, respectively?
A. $0 and $0.
B. $12,000 and $1,680.
C. $12,000 and $12,000.
D. None of these answer choices are correct.
Answer: C
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The basic concept for revenue recognition is the realization of cash
a. True b. False Indicate whether the statement is true or false
On October 1, 2012, Glover Company borrowed $200,000 on a two-year, 12% note, with interest and principal to be paid at maturity. How much interest expense will Glover report on its income statement for the year ending December 31, 2012?
A) $ 6,000 B) $18,000 C) $24,000 D) $12,000
Fly High Airlines acquires a new aircraft. It has an estimated life of 10 years and should be used for 20,000 hours of flight. What is the most appropriate method of depreciation to properly match revenues and expenses?
A) Double-declining-balance method B) Revenue expenditure method C) Straight-line method D) Units-of-activity method
For determining revenue recognition, eligibility requirements for government-mandated nonexchange transactions and voluntary nonexchange transactions are categorized into four general classifications including all of the following except:
A. Refunding. B. Time requirements. C. Reimbursement. D. Required characteristics of the recipients. E. Contingencies.