A company purchases for $48,000 an asset that has a useful life of six years and no salvage value. After two years, the company spends $8,000 for a major overhaul that will extend the machine's useful life four years beyond the original six. Assuming straight-line depreciation, how much depreciation should be taken in year 3?
A) $4,000
B) $5,000
C) $5,600
D) $8,000
B
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The purchase and sale of debt and equity securities would appear in which section of the statement of cash flows?
A) Operating activities B) Investing activities C) Financing activities D) Noncash investing and financing activities
A company had a beginning balance in retained earnings of $430,000. It had net income of $60,000 and declared and paid cash dividends of $56,250 in the current period. The ending balance in retained earnings equals:
A. $433,750. B. $116,250. C. $426,250. D. $490,000. E. $546,250.
______ aspects of psychological contracts emphasize specific, short-term, monetary obligations, such as payment for services provided by employees.
A. Compensation B. Social C. Transactional D. Cultural
The size of the monthly payment on a mortgage is not dependent on the
A) principal borrowed. B) interest rate. C) maturity. D) broker's commission.