Accounting Homework :)

Equipment was purchased for $17,000 on January 1, 2009. Freight charges amounted to $700 and there was a cost of $2,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $3,000 salvage value at the end of its 5year useful life. What is the amount of accumulated depreciation at December 31, 2010, if the straightline method of depreciation is used? $2,860. $5,720. $6,680. $3,340. Equipment was purchased for $60,000. Freight charges amounted to $2,800 and there was a cost of $8,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12,000 salvage value at the end of its 5year useful life. Depreciation expense each year using the straightline method will be $9,840. $14,160. $11,760. $9,600. Brevard Corporation purchased a taxicab on January 1, 2009 for $17,000 to use for its shuttle business. The cab is expected to have a fiveyear useful life and no salvage value. During 2010, it retouched the cab's paint at a cost of $800, replaced the transmission for $2,000 (which extended its life by an additional 2 years), and tunedup the motor for $100. If Brevard Corporation uses straightline depreciation, what annual depreciation will Brevard report for 2010? $2,750. $2,733. $3,400. $2,600. Nix Corporation sold equipment for $12,000. The equipment had an original cost of $36,000 and accumulated depreciation of $18,000. Ignoriing the tax effect, as a result of the sale net income will decrease $12,000. net income will increase $12,000. net income will increase $6,000. net income will decrease $6,000. A gain or loss on disposal of a plant asset is determined by comparing the replacement cost of the asset with the asset's original cost. book value of the asset with the asset's original cost. original cost of the asset with the proceeds received from its sale. book value of the asset with the proceeds received from its sale. The following information is provided for Nguyen Company and Northwest Corporation. (in $ millions) Net income 2010 Net sales 2010 Total assets 12/31/08 Total assets 12/31/09 Total assets 12/31/10 Nguyen Company $275 1,500 1,000 1,050 1,150 Northwest Corporation $325 3,700 2,400 3,000 4,000 What is Northwest's asset turnover ratio for 2010? 0.95 times 1.06 times 10.77 times 0.93 times Research and development costs should be included in the cost of the patent they relate to. are capitalized and then amortized over a period not to exceed 20 years. are classified as intangible assets. must be expensed when incurred under generally accepted accounting principles. If a company incurs legal costs in successfully defending its patent, these costs are recorded by debiting the Patent account. Legal Expense. a revenue expenditure account. the Intangible Loss account. A company has the following assets: Buildings and Equipment, less accumulated depreciation of $4,000,000 Copyrights Patents Land The total amount reported under Property, Plant, and Equipment would be $19,000,000. $14,000,000 1,500,000 3,000,000 5,000,000 $23,500,000. $18,000,000. $20,500,000. Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the unitsofactivity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? $60,000. $67,800. $49,500. $56,250. Unitsofactivity is an appropriate depreciation method to use when the company is a manufacturing company. it is impossible to determine the productivity of the asset. the asset's use will be constant over its useful life. the productivity of the asset varies significantly from one period to another Rodgers Company purchased equipment and these costs were incurred: Cash price Sales taxes Insurance during transit Installation and testing $22,500 1,800 320 430 Total costs $25,050 Rodgers will record the acquisition cost of the equipment as $24,620. $24,300. $22,500. $25,050