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Purchase of a piece of equipment on 1/1, $200,000, 10 year useful life, no salvage value. Utilities costs to be paid within a week after
Purchase of a piece of equipment on 1/1, $200,000, 10 year useful life, no salvage value. Utilities costs to be paid within a week after the end of the year, $10,000. Vacation earned by employees and will be taken within 2 weeks after the end of the year, $50,000 Payment on long-term debt principal, $500,000 Payment on long-term debt interest, $50,000 Under modified accrual (MA) accounting and accrual (A) accounting, the following amounts at the end of the year will equal expenditures and expenses, respectively: $610,000 MA; $80,000 A. $810,000 MA; $130,000 A. $310,000 MA; $330,000 A $110,000 MA: $130,000 A
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