[The following information applies to the questions displayed below.]Farmer Company purchased machine on January 1, Year 1 for $82,000. The machine is estimated to have a 5-year life and a salvage value of $4,000. The company uses the straight-line method.If the original expected life remained the same (i.e., 5-years), but at the beginning of Year 4, the salvage value was revised to $8,000, what is the annual depreciation expense for each of the remaining years?
A. $13,600
B. $27,200
C. $5,440
D. $14,800
Answer: A
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On June 1, Dave Byers bought 10 Continental Technology bonds with a coupon rate of 9% interest paid on May 1 and November 1. The purchase price was 92.750 and the commission was $5 per bond. Dave sold the bonds on October 1 for 94.50. What was his total gain on this investment?
What will be an ideal response?
Paper Corporation holds 80 percent of the voting shares of Scissor Company. On January 1, 20X8, Scissor purchased $100,000 par value 12 percent first mortgage bonds of Paper from Cruse for $115,000. Paper originally issued the bonds to Cruse on January 1, 20X6, for $110,000. The bonds have an 8-year maturity from the date of issue. Scissor's reported net income of $65,000 for 20X8, and Paper reported income (excluding income from ownership of Scissor's stock) of $90,000.Based on the information given above, what gain or loss on the retirement of bonds should be reported in the 20X8 consolidated income statement?
A. $6,250 gain B. $7,500 loss C. $7,500 gain D. $6,250 loss
Given the following opportunity loss function, determine the loss when 1,100 units are sold
Opportunity loss = 3 (1,000 - X) for X ? 1,000, otherwise 0. A) 0 B) -300 C) 300 D) 3 E) 600
The ________ of 1976 requires the pretesting of certain new chemicals marketed for safety each year.
A. Toxic Substance Control Act B. Consumer Protection Act C. Hazard Communication Act D. Environmental Protection Act