A gain or loss on disposal of a plant asset is determined by comparing the repla
ID: 2485243 • Letter: A
Question
A gain or loss on disposal of a plant asset is determined by comparing the replacement cost of the asset with the asset's original cost. Original cost of the assert with the proceeds received from its sale. Book value of the asst with the proceeds received from its sale. Book value of the asst with the asset's original cost. Dividends payable is classified as a long-term liability. stockholders' equity account. Contra stockholders ' equity account to retained earnings. current liability. Collection of a $ 1.000 Accounts Receivable increases an asset S1.000; decreases an asset $ 1.000. decreases a liability $1,000; increases stockholders' equity $1,000. decreases an asset S1.000; decreases a liability $ 1.000. increases an asset $1,000; decreases a liability $1,000. Which one of the following items is not considered a part of the cost of a truck purchased for business use? Freight charges Truck license Cost of lettering on side of truck Sales tax If total liabilities increased by $30,000 and stockholders' equity increased by $20,000 during a period of time, then total assets must change by what amount and direction during that same period? $50,000 decrease $10,000 decrease $10,000 increase $50,000 increase Mather Company purchased equipment on January 1, 2015 at a total invoice cost of $336,000; additional costs of $6,000 for freight and $30,000 for installation were incurred. The equipment has an estimated salvage value of $12,000 and an estimated useful life of five years. The amount of accumulated depreciation at December 31, 2016 if the straight-line method of depreciation is used is $129,600. $132,000. $144,000. $148,800.Explanation / Answer
7- C- Book value of Assets with proceeds received from its Sale.
8- D Current Liabilities
Dividends payable are dividends that a company's board of directors has declared and approved by shareholders which is to be paid to its shareholders. Until such time as the company actually pays to the shareholders, the cash amount of the dividend is recorded within a dividends payable account as a current liability.
9- A- Increases an assets $1000, Decreases an assets $1000
Receivable will decrease by $1000 and cash will increase by $1000
10- D - Sales Tax
Sales tax may not be capitalized if company is eligible to take Cenvat Credit of Saes tax.
11- D - $50000 Increase
12- C- $144000
Invoice Cost $336,000.00 Freight & Installation cost $36,000.00 Total Cost $372,000.00 Salvage Value $12,000.00 Life 5 year Depreciation for 2015 $72,000.00 Depreciation for 2016 $72,000.00 Total Accumulated Dep. $144,000.00Related Questions
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