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Yocum Company purchased equipment on January 1 at a list price of
$100,000, with credit terms 2/10, n/30. Payment was made within the
discount period and Yocum was given a $2,000 cash discount. Yocum
paid $5,000 sales tax on the equipment, and paid installation charges
of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete
slab on which to place the equipment. What is the total cost of the new
equipment?
$104,760
$108,760
$110,760
$101,000
6- Multiple Choice Question 98
A company purchased factory equipment for $350,000. It is estimated
that the equipment will have a $35,000 salvage value at the end of its
estimated 5-year useful life. If the company uses the double-decliningbalance method of depreciation, the amount of annual depreciation
recorded for the second year after purchase would be
$84,000.
$140,000.
$126,000.
$60,480.
7- Multiple Choice Question 175
On a balance sheet, natural resources may be described more
specifically as all of the following except