Reference no: EM131018419

1. Assume the following cost of goods sold data for a company:

2015	$1,300,000
2014	1,200,000
2013	1,000,000

If 2013 is the base year, what is the percentage increase in cost of goods sold from 2013 to 2015?

30% or 70 or 130 or 20

2. The following data is available for BOX Corporation at December 31, 2014:

Common stock, par $10 (authorized 30,000 shares)	$250,000
Treasury stock (at cost $15 per share)	$1,200

Based on the data, how many shares of common stock are outstanding?

$30,000 or 24,920 or 25,000 or 29,920

3. Thayer Company purchased a building on January 2 by signing a long-term $2,520,000 mortgage with monthly payments of $23,100. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be

$2,499,000 or 2,496,900 or 2,517,900 or 2,520,000

4. The following totals for the month of April were taken from the payroll records of Metz Company.

Salaries	$30,000
FICA taxes withheld	2,295
Income taxes withheld	6,600
Medical insurance deductions	1,200
Federal unemployment taxes	240
State unemployment taxes	1,500

The entry to record accrual of employer’s payroll taxes would include a

credit to payroll tax expense for $4,035 or credit to FICA taxes payable for 1,740 or credit to payroll tax expense for 1,740 or debit to payroll tax expense

5. If a plant asset is retired and is fully depreciated

no gain or loss on disposal will be recorded.

a gain on disposal will be recorded.

phantom depreciation must be taken as though the asset were still on the books.

a loss on disposal will be recorded.

6. Brevard Corporation purchased a taxicab on January 1, 2013 for $25,500 to use for its shuttle business. The cab is expected to have a five-year useful life and no salvage value. During 2014, it retouched the cab's paint at a cost of $1,200, replaced the transmission for $3,000 (which extended its life by an additional 2 years), and tuned-up the motor for $150. If Brevard Corporation uses straight-line depreciation, what annual depreciation will Brevard report for 2014?

$4100 or 5100 or 3900 or 4125.