Reference no: EM131267769
On January 1, 2002, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 10 years and a salvage value of $10,000. On January 1, 2005, ABC Company decided the life of the equipment should be revised from 10 to 15 years with a salvage value of $4,000 at the end of the 15 years.
Calculate the book value of the equipment at December 31, 2009 assuming ABC Company uses the straight line depreciation method. Do not use decimals in your answer.
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Compute the correct cost of goods sold for each year
: Skysong, Inc. reported cost of goods sold as follows. 2017 2016 Beginning inventory $ 29,810 $ 18,310 Cost of goods purchased 166,280 156,180 Cost of goods available for sale 196,090 174,490 Less: Ending inventory 36,960 29,810 Cost of goods sold $15..
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Significant influence over lennon was achieve by acquisition
: On January 1, 2013, Pacer Company paid $1,920,000 for 60,000 shares of Lennon Co.'s voting common stock which represents a 45% investment. No allocation to goodwill or other specific account was made. Significant influence over Lennon was achieved by..
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Ability to significantly influence the investees operations
: Atlarge Inc. owns 30% of the outstanding voting common stock of Ticker Co. and has the ability to significantly influence the investee's operations and decision making. What was the balance in the Investment in Ticker Co. account at the end of 2013?
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The bonds were issued at premium
: On February 28, 2015, $5,000,000 of 6%, 10-year bonds payable, dated December 31, 2014, are issued. Interest on the bonds is payable semiannually each June 30 and December 31. If the total amount received (including accrued interest) by the issuing c..
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Calculate the book value of the equipment
: On January 1, 2002, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 10 years and a salvage value of $10,000. Calculate the book value of the equipment at December 31, 2009 assuming ABC Company uses the st..
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Collects cash from the buyer installment payments
: Isaac Inc. began operations in January 2016. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the b..
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Internal event which should be recorded as transaction
: Several events are listed below. Indicate whether each event is an external event that should be recorded as a transaction, an internal event which should be recorded as a transaction, or an event which should not be recorded. Federal income tax retu..
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Adjusting entry to record accrued interest
: Yeats Company issued a $5,000 face value note to the State Bank on December 1, Year XXX1. The note had a 12 percent annual rate of interest and a one-year term. The adjusting entry to record accrued interest on December 31, Year XXX1, would.
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Paid off in regular quarterly payments
: A mortgage that was orignally $20000 is being paid off in a regular quarterly payments of $500. The interest rate is 8% compounded quarterly. How much of the principal remains after 9 years, or 36 payments?
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