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the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.
The journal entry to adjust the plant assets to fair value and record
revaluation surplus in year one will include a
3)
A major objective of MACRS for tax depreciation is to
4)
Sifton Company reported the following data:
2014
2015
Sales $3,000,000
$3,900,000
Net Income 300,000
400,000
Assets at year end
1,800,000
2,500,000
Liabilities at year end 1,100,000
1,500,000
What is Sifton’s asset turnover for 2015?
5) Which of the following principles best describes the conceptual
rationale for the methods of matching depreciation expense with
revenues?
6) Slotkin Products purchased a machine for $39,000 on July 1,
2014. The company intends to depreciate it over 8 years using the
double-declining balance method. Salvage value is $3,000.
Depreciation for 2014 is
7) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.
The financial statements for year one will include the following
information