On November 1, 2016. Crane Company places a new asset into service. The cost of the asset is $84500 with an estimated 10-year life and $10500 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Crane Company uses the straight-line method of depreciation? O $7400. O $1233 O $4225. O $1850. On January 1, a machine with a useful life of 5 years and a salvage value of $30000 was purchased for $200000. What is the depreciation expense for year 2 under straight-line depreciation? O $24000 O $96000 O $120000 O $34000. Sheridan Company purchased machinery with a list price of $86000. They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $4000. Sheridan estimates that the machinery will have a useful life of 10 years and a residual value of $35000. If Sheridan uses straight-line depreciation, annual depreciation will be O $4638 O $4240 O $4680 O $8180. In 2017, Flounder Corp. has plant equipment that originally cost $145000 and has accumulated depreciation of $40000. A new processing technique has rendered the equipment obsolete, so it is retired. Which of the following should Flounder do to record the retirement of the equipment? O Increase to Equipment for $145000, increase to Accumulated Depreciation - Equipment for $40000 and a decrease to Loss on Disposal for $105000. O Increase to Loss on Disposal and Accumulated Depreciation - Equipment for $105000. o Decrease to Accumulated Depreciation - Equipment for $40000, increase to Loss on Disposal for $105000, and decrease to Equipment for $145000. o Increase to Loss on Disposal and decrease to Equipment for $105000. A computer company has $3820000 in research and development costs. Before accounting for these costs, the net income of the company is $4600000. What is the amount of net income or loss before taxes after these research and development costs are accounted for? O $780000 net income O Cannot be determined from the information provided. O $3820000 net income. O $780000 loss. Ivanhoe Company incurred $880000 of research and development costs in its laboratory to develop a new product. It spent $159000 in legal fees for a patent granted on January 2 2017. On July 31, 2017, Ivanhoe paid $80000 for legal fees in a successful defense of the patent. What is the total amount of the increased to Patents through July 31, 2017? O $239000. O $1119000. O $880000 O Some other amount. The following information is provided for Sunland Company and Marigold Corp.. (in $ millions) Sunland Company Marigold Corp. Net income 2017 $130 $350 Net sales 2017 1505 4840 Total assets 1020 2370 12/31/15 Total assets 1240 3010 12/31/16 1155 4040 Total assets 12/31/17 What is Sunland's return on assets for 20172 O 109.0% O 11.396 O 10.5% O 10.9% Current Attempt in Progress The following information is provided for Pharoah Company and Flounder Corp. (in 5 millions) Pharoah Company Flounder Corp Net income 2017 $125 $450 Net sales 2017 1640 4630 Total assets 1005 2150 12/31/15 Total assets 1060 3040 12/31/16 1160 4030 Total assets 12/31/17 What is Pharoah's asset turnover ratio (rounded) for 2017? O 1.48 times O 4.00 times O 0.74 times O 0.27 times A company has the following assets: Buildings and Equipment, less accumulated depreciation of $6000000 Copyrights $21300000 2550000 Patents 19500000 21500000 Land The total amount reported under Property. Plant, and Equipment would be O $42800000. O $45350000. O $64850000. O $62300000
