Which of the following statements regarding the fixed asset turnover ratio is incorrect? The ratio increases when a company sells a factory building for a gain. The denominator is average net fixed assets. The numerator is net operating Income. The ratio is used to assess a company's effectiveness in generating sales from its fixed assets, Warren Company plans to depreciate a new building using the double declining balance depreciation method. The building costs 5720,000 The estimated residual value of the bu It has an expected useful life of 25 years What is the building's book value at the end of the first year? O $662.400 $28.800 $57600 O $31238 On August Red Company purchased computer equipment for $11200 cash and also gave 100 shares of White common stock that Red Company held as an investment. The White Co Red Company $5,000 and on August had a fair value of $4.500The installation costs for the computer equipment were $820 and shipping costs were 5620. What amount should be debited to the computer equipment account? $16.200 $17640 515200 O $17140 A machine, acquired for a cash cost of $30,000, is being depreciated on a straight-line basis of $3.000 per year. The residual value was estimated to be 20% of cost. The estimate 7 years 8 years 5 yeu 9 years Which of the following umalentes correct for Smith Company when Smith us 1000 shares of 515 par value common stock and pays $20.000 cash in exchange for the building? The market price of the Smithstock on the exchange date was $30 per share and the building's book value on the books of the seller was 5201000 O Dia Commons 322100 373100 223100 O Bong Cash Commons 20100 300 000 O Dong 77600 Cash Common Rock 20100 151500 122100 OB C Commons Adrenalin 20100 151500 151300