Exam A

A company has equipment which cost $$9\mathrm{.}3$ million with accumulated depreciation of $$4\mathrm{.}8$ million,

that will generate estimated future cash flows of $$4\mathrm{.}2$ million, and a fair value of $$4\mathrm{.}1$ million.

How much is the asset impairment loss?

A$)$ $$5\mathrm{.}20$ million

B$)$ $$0\mathrm{.}30$ million

C$)$ $$0\mathrm{.}70$ million

D$)$ $$0\mathrm{.}40$ million

A company purchased goods on credit with credit terms of $\frac{3}{20},\frac{n}{50}.$ Although the company does

not have cash available to pay within the discount period, the manager of the company is

considering borrowing money to take advantage of the discount. In order to make the appropriate

decision, the manager computed the annual interest rate associated with the discount.

Which of the following is the annual interest rate $($rounded$)?$

A$)23\%$

B$)38\%$

C$)56\%$

D$)25\%$

RJ Corporation has provided the following information about one of its inventory items:

During the year, RJ sold $2,000$ units.

What was ending inventory using the FIFO cost flow assumption?

A$)$ $$780,000$

B$)$ $$736,000$

C$)$ $$208,000$

D$)$ $$164,000$