objectivs A2 nyd average tosal assets of $897 000. Its gros sales were $1.$900 o

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objectivs A2 nyd average tosal assets of $897 000. Its gros sales were $1.$900 oanyttl aset turnover eq 0.82 B) 0.90 C) 1.09 and its t sales wee $1,000,000. The E) 126. 9. Plant assets include A) Land. C) Buildings D) Machinery and equipment E) All of the above. 10. A :PI y purchased property for $100,000. The property parking appraised at $62,000; the land at $45,0o0, records is A) S B) S 36,000. C) $ 42,000. D) $ 45,000. E) $100,000. and the parking lot a $18,000. The value of the land to be recorded in the accourting Leaning Objective: P2 useful life of 5 years. Using the straight-line method, how mach depeeciation expemse should the company recoghi It has an estimated a delivery van for $23,000 with a salvage value of $3,000 on Seprember 1,2005, December 31, 2005? A) $1,000. B) $1,333. C) $1,533. D) $4,000. E) $4,600. company purchased a cash register on January 1 for SS 400 This regster has a seful life of ?O year, and asalvagt value S400. What would be the depreciation expense for the 2' year of its useful life using the double-declining-balance method? A) S 500. B) S 800 C) S 864. D) $1,000. E) $1,080. P2 12. A A company purchased a rope braiding machine for $190,000. The machine has a useful life of 8 years and a residual value $10,000. It is estimated that the machine could produce 750,000 units of elimbing rope over its useful life. In the first yes 105,000 units were produced. In the second year, production increased to 109,000 units. Using the units-of -production n what is the amount of depreciation that should be recorded for the second year? A) $25,200. B) $26,160. C) $26,660 D) $27,613. P2 13. E) $53,160. P3 A) Are expenditures to keep an asset in normal operating condition. B) Are necessary if an asset is to perform to expectations over its useful life. C) Are treated as expenses. D) Include cleaning, lubricating, and normal adjusting E) All of the above. 14. Ordinary repairs:

Explanation / Answer

14)option E all of the above

8) total assets turnover net sales/average total assets 1,000,000/897,000 1.114827 option D) 1.11 9) option E) All of the abover 10) building 62,000 land 45,000 parking lot 18,000 total 125,000 land = 45000/125000 0.36 hence 100,000*.36= $36,000 to be allocated to lan option b) $36,000 11) depreciation expense (23000-3000)/5 4000 4000*4/12   = 1333.333 option B) $1,333 12) double declining rate = 1/10*2= 20% (5400*20% = 1080 (5400-1080)*20%= 864 option C) $864 13) depreciation rate = (190,000-10000)/750000 0.24 Depreciation expense for second year = .24*109000 26160 option B) $26,160

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