White Corporation purchased 40% of the common stock of Green Company for $600,000 on January 2, 2020. During 2020, Green Company declared and paid a dividend of $100,000 and reported net income of $400,000. White Company uses the equity method of accounting for its investment in Green Company. What is the balance in White Corporation's Equity Investments account at December 31, 2020?

Question 10 options:

a)

$900,000.

b)

$720,000.

c)

$760,000.

d)	$1,000,000.

e)

$600,000.

Ashes & Fire, Inc. agreed to purchase equipment from Delta Spirt, LLC on October 1, 2020. Along with the equipment, Delta Spirit will provide one-year maintenance services on an as needed basis, beginning once the equipment is installed. Delta Spirit provides similar services to other customers that purchased equipment sold by other vendors for $17,500. Delta Spirit will also provide installation services at no additional cost, a service that Delta Spirit typically charges $10,500. The equipment normally sells for $322,000 on its own. For the package deal, Ashes & Fire agrees to pay a total of $300,000. The equipment was delivered and installed on December 1, 2020. How much revenue should Ashes & Fire recognize relating to this deal in their 2020 Income Statement (round to the nearest dollar)?

Question 11 options:

a)

$286,250.

b)

$300,000.

c)

$285,000.

d)

$350,000.

Equipment that cost $875,000 and had a book value of $390,000 was sold for $450,000. Data from the comparative balance sheets are:

12/31/21 12/31/20

Equipment $5,400,000 $4,875,000

Accumulated Depreciation 1,650,000 1,425,000

Equipment purchased during 2021 was

Question 17 options:

a)	$1,400,000.

b)

$825,000.

c)

$525,000.

d)

$915,000.

Link Co. purchased machinery that cost $3,000,000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a nine-year life and a $200,000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations. Before the correction was made, and before the books were closed on December 31, 2021, retained earnings was understated by

Question 16 options:

a)	$3,000,000.

b)	$2,333,333.

c)	$2,377,778.

d)	$2,066,667.