Exam (elaborations)
ACG 2021 Chapter 9 (1
- Course
- Institution
ACG 2021 Chapter 9 (1
[Show more]
Seller
Follow
modockochieng06
Content preview
ACG 2021 Chapter 9A company purchased equipment and incurred these costs:
Cash price, $24,000
Sales taxes, $1,200
Insurance during transit, $200
Annual maintenance costs, $400
What amount should be recorded as the cost of the equipment? - ANS-25,400
price+sales taxes+ins during transit = equipment
A company purchased land for $80,000.
The company also assumes $12,000 of accrued taxes on the property, incurred $5,000 to
remove an old building, and received $2,000 from the salvage of the old building.
At what amount will the land be recorded in the accounting records? - ANS-95,000
In computing depreciation, salvage value is - ANS-an estimate of a plant asset's value at the
end of its useful life.
Recording depreciation each period is necessary in accordance with the - ANS-expense
recognition principle
On September 1 of the current year, a company purchased an asset for $9,000. It has a $1,500
salvage value and a 4-year useful life. How much is the current year depreciation expense using
the straight-line method? - ANS-625
(9000-1500)/4*4/12
=625
A company purchased equipment that has an invoice price of $18,000. It also paid freight
charges of $500 and installation costs of $2,500. The estimated salvage value and useful life
are $3,000 and five years, respectively. Under the straight-line method, how much is annual
depreciation expense? - ANS-3600
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80364 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now