Increases in the recoverable value of a total disposal group are: Multiple Choice

recorded in net income but are limited to the carrying value of the disposal group on the date it was designated as held-for-sale.

ignored.

recorded in net income.

credited to Retained Earnings.

Gross billings for merchandise sold by Stratford Co. to its customers last year amounted to $19,650,000; sales returns and allowances were $370,000, sales discounts were $175,000, and freight-out was $140,000. Net sales last year for Orio Company were:

Multiple Choice

• $18,965,000.

• $19,280,000.

• $19,105,000.

• $19,650,000.

A company had 30,000 shares of common stock outstanding on January 1, 2006. On March 1, the company issued an additional 18,000 shares of common stock. Net income for the year was $99,000. The earnings per share were (round to the nearest cent):

Multiple Choice

• $2.06.

• $1.27.

• $0.18.

• $2.20.

On January 1, 2009, a corporation purchased a truck that cost $20,000. It is being depreciated on a straight line basis over 6 years, with a $2,000 residual value. At the end of 2010, it is determined that the useful life should total 14 years and the residual value should be zero. What is the 2011 depreciation expense?

Multiple Choice

• $600

• $900

• $1,200

• $1,000