Rock Industries purchased a piece of equipment for $171,500. The installation and shipping charges were $8,500. They expect the equipment to be used for 8 years and have no residual value. Rock Industries elects to use the sum-of-the-years' digits method of depreciation. What is the amount of accumulated depreciation by the end of the third year?
$105,000
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Cash paid for preferred stock dividends should be shown on the statement of cash flows under
a. investing activities b. financing activities c. noncash investing and financing activities d. operating activities
Which budgeting method entails defining specific promotion goals, determining the necessary tasks, and estimating the costs to determine a promotion budget?
A) percentage-of-sales method B) objective-and-task method C) affordable method D) exponential task method E) competitive-parity method
The recovery for breach of contract is usually limited to contract damages
Indicate whether the statement is true or false
Wash N' Set Corp purchased equipment for $45,000
Total depreciation of $36,000 was recorded. On January 1, 2017, Wash N' Set exchanges the equipment for new equipment, paying $54,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange has commercial substance. What will be an ideal response