The Antarctica Co acquired a machine on January 1, 2016, at a cost of $60,000. The machine is expected to have a ten-year life and a residual value of $5,000. The estimated lifetime output from the machine is expected to be 55,000 units. Under which of the following depreciation methods would the depreciation charge be the greatest in 2016 if 9,100 units were produced during the year?
A) activity (units-of-output) method
B) straight-line method
C) sum-of-the-years'-digits method
D) double-declining-balance method
D
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Which of the following criteria is applicable with respect to determining when a variable interest entity (VIE) must be consolidated into the sponsoring firm's financial statements?
A. A consolidation must occur if the firm is entitled to receive all of the VIE's residual returns. B. A consolidation must occur if the firm has a controlling financial interest and is the VIE's primary beneficiary. C. A consolidation must occur if the sponsoring firm owns more than 50% of the VIE's equity. D. A consolidation must occur regardless of the risk of loss exposure.
The motivation for writing a business message will help determine and shape which of the following?
A) Audience reaction to the message B) Audience acceptance to the message C) Audience understanding of the message D) The effectiveness of the message E) The nature of the idea
List and discuss two common reasons why companies invest in debt or equity securities.
What will be an ideal response?
Which of the following should be reported net of the related income tax effect on the income statement?
A) Sale of an inventory item at a loss B) Loss due to theft C) Loss due to a discontinued operations of the business D) Sale of a temporary investment at a loss