Determine the effect on a company’s Assets and Net Income from the following transaction: a patent is amortized at year end.
|E||None of the above|
If an expenditure is treated as a revenue expenditure, instead of as a capital expense, which of the following statements is true?
The following is available for a company’s machine on December 31, Year 1:
|Cost||6,000||Method||Double Declining Balance|
|Salvage Value||1,500||Purchased||January 1, Year 1|
|Accumulated Depreciation||2,400||Expected Life||5 years|
The following is available for a company’s machine on January 1, Year 3:
|Salvage Value||6,000||Purchased||January 1, Year 1|
|Accumulated Depreciation||8,000||Expected Life||8 years|
On January 1, Year 3 a major overhaul was made on the machine costing $5,000 and the total estimated useful life was extended 4 years. Depreciation expense for year the year ending December 31, Year 3 is:
Failure to record depreciation expense for the year has what affect on the following:
|3||No Effect||No Effect||No Effect|