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If a plant asset is retired and is fully depreciated

09/11/2021 Client: muhammad11 Deadline: 2 Day

Multiple Choice Question 152

If a plant asset is retired before it is fully depreciated, and the salvage value received is less than the asset's book value,

Gagner Clinic purchases land for $150,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?

All of the following factors in computing depreciation are estimates except

Depreciation is the process of allocating the cost of a plant asset over its service life in

Rooney Company incurred $420,000 of research and development cost in its laboratory to develop a patent granted on January 1, 2013. On July 31, 2013, Rooney paid $63,000 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2013, should be:

A plant asset was purchased on January 1 for $50,000 with an estimated salvage value of $10,000 at the end of its useful life. The current year's Depreciation Expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is

Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as

A company receives $348, of which $28 is for sales tax. The journal entry to record the sale would include a

If bonds can be converted into common stock,

The relationship between current liabilities and current assets is

Employee payroll deductions include each of the following except

Bargain Company has $1,600,000 of bonds outstanding. The unamortized premium is $21,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

On October 1, 2013, Pennington Company issued an $80,000, 10%, nine-month interest-bearing note. If the Pennington Company is preparing financial statements at December 31, 2013, the adjusting entry for accrued interest will include a:

Julie's Boutique has total receipts for the month of $30,660 including sales taxes. If the sales tax rate is 5%, what are Julie's sales for the month?

Aire Corporation retires its bonds at 106 on January 1, following the payment of semi-annual interest. The face value of the bonds is $600,000. The carrying value of the bonds at the redemption date is $631,500. The entry to record the redemption will include a

[removed]

debit of $31,500 to Premium on Bonds Payable.

[removed]

credit of $31,500 to Loss on Bond Redemption.

[removed]

debit of $36,000 to Premium on Bonds Payable.

[removed]

credit of $5,250 to Gain on Bond Redemption.

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