Question
Which of the following assets would be considered an intangible asset? a. oil well b. equipment c. patent d. inventory Grandfork Company purchased a patent
Which of the following assets would be considered an intangible asset? a. oil well b. equipment c. patent d. inventory
Grandfork Company purchased a patent for $32,000 on July 1, 2020. The patent has a life of 8 years, no salvage value. If Grandfork records patent amortization on December 31, 2020, how much Patent Expense will be recorded? a. $32,000 b. $4,000 c. $2,000 d. None of these
Libby Mining purchased an iron mine for $3,000,000. The mine is expected to produce 100,000 tons of iron ore during its life. This year, Libby extracted 20,000 tons of ore. How much depletion expense should Libby record this year? a. $30,000 b. $600,000 c. $3,000,000 d. $300,000
Williams purchased equipment with a cost of $28,000, life of 5 years and salvage value of $3,000. What is the depreciable cost of the equipment? a. $28,000 b. $5,000 c. 25,000 d. $5,000
What is the name of the payroll document published by the Internal Revenue Service that contains the tax rates and withholding information used by payroll managers? a. Your Payroll Pal b. Your Role in Payroll c. Publication 15 Circular E d. 50 Shades of Payroll
Cameron Corp purchased a truck. Which of the following would not be capitalized? a. cost of test runs of the truck b. contract price charged by dealer c. Cost of painting the company name on the truck d. cost of speeding ticket of the truck delivery driver
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started