On October 2, 2018, Dave acquired and placed into service 5-year business equipment costing $70,000. No other acquisitions were made during the year. Dave does not apply Sec. 179 expensing or bonus depreciation. The depreciation for this year is
A. $3,500.
B. $14,000.
C. $7,000.
D. $0.
Answer: A
You might also like to view...
Which of the following is not part of the information provided by HR management to support management decisions?
a. generating a variety of HR forms and documents b. preparing management reports c. preparing governmental reports d. all of these are part of the information provided by HR management
Joe E. Conomist purchased 100 shares of IBM corporation in 2011 for $10,000. In 2014, Joe sold these shares to Sally Forth for $15,000. How would this sale of stock in 2014 affect IBM corporation?
A. IBM makes $5,000 in profit. B. IBM invests $5,000 in capital equipment. C. IBM suffers a loss of $5,000. D. IBM is unaffected.
What specific internal control procedure would prevent the shipping clerk from taking goods from the storeroom and sending them to someone who had not placed an order?
Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the application of factory overhead to production is:
A. Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000. B. Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000. C. Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000. D. Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000. E. Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000.