Royal Company purchased a dump truck at the beginning of 2012 at a cost of $60,000 . The truck had an estimated life of 6 years and an estimated residual value of $24,000 . On January 1, 2014, the company made major repairs of $20,000 to the truck that extended the life 1 year. Thus, starting with 2014, the truck has a remaining life of 5 years and a new salvage value of $8,000 . Royal uses the
straight-line depreciation method. What is the book value of the truck to be reported on the balance sheet at December 31, 2014?
a. $44,000
b. $50,000
c. $56,000
d. $62,000
c
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Manufacturers use each of the following arguments against paying slotting fees, except:
A) they are a form of extortion B) the fees favor new companies C) manufacturers are forced to pay millions of dollars that could be used for advertising, sales promotions, and other marketing efforts D) the fees favor large manufacturers over small manufacturers
The time between placing an order and receiving the item is called ______.
A. lead time B. lag time C. due date D. order time
In process costing, all indirect materials are charged directly to Work in Process Inventory.
Answer the following statement true (T) or false (F)
Bob is the promoter of a new corporation that has not yet been incorporated. On behalf of the as yet unincorporated business, he enters into a three-year lease agreement for office space and personally signs the lease in his own name. The corporation is liable on the contract, because Bob is its agent
a. True b. False Indicate whether the statement is true or false