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On 7/1/09 ABC company sold inventory to XYZ company for $300000. The terms of the sale were: Downpayment of $75000, and three annual installments starting on 7/1/10. Each installment will include interest (but ignore). The cost of inventory was $120000 and ABC uses the perpetual inventory system.
A) Prepare a schedule using the cost recovery method. B) Prepare the journal entries.
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What is the acquisition cost of each asset? Prepare a journal entry to record the acquisition. Danny plans to depreciate the operating assets on a straight-line basis for 20 years. Determine the amount of depreciation expense for 2008 on these newl..
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Using the appropriate interest table, answer each of the following questions.
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Describe depreciation methods employed by the company. Describe principles and methods peculiar to the industry in which the company operates when these principles and methods are predominately followed in that industry.
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