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Whichofthefollowingitemsshouldbeaccountedforasacapitalexpenditure?

A. Themonthlyrentalcostofanofficebuilding.
B. Salestaxespaidinconjunctionwiththepurchaseofofficeequipment.
Costsincurredtorepairleaksinthebuildingroof.
D. Maintenancefeespaidwithfundsprovidedbythecompanycapital.

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HarperCompanyacquiredamachinefor$26,000andhasrecordeddepreciationforthreeyearsusingthestraight-linemethodoverasix-yearlifeand$2,000residualvalue.Whatisthebookvalueofthemachineattheendofthreefullyearsofuse?

A. $12,000
B. $13,000
C. $14,000
D. $16,250

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SmithCompanyfailedtorecorddepreciationofequipment.HowdoesthisomissionaffectSmith’sfinancialstatements?

A. Netincomeisoverstatedandassetsareoverstated.
B. Netincomeisunderstatedandassetsareunderstated.
C. Netincomeisoverstatedandassetsareunderstated.
D. Netincomeisunderstatedandassetsareoverstated.

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HunterCompanyusesthedouble-declining-balancemethodtomeasuredepreciationonitscomputers.Whichitemisnotneededtocomputedepreciationforthefirstyear?

A. Originalcost
B. Estimatedsalvagevalue
C. Expectedusefullifeinyears
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Whichofthefollowingaccountsisreportedontheincomestatement?

A. Unearnedrevenue
B. Accumulateddepreciation
C. Gainondisposalofequipmenr
D. Allowanceforuncollectibleaccounts

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Whichofthefollowingitemsshouldbeaccountedforasacapitalexpenditure?

A. Themonthlyrentalcostofanofficebuilding. B. Salestaxespaidinconjunctionwiththepurchaseofofficeequipment. Costsincurredtorepairleaksinthebuildingroof. D. Maintenancefeespaidwithfundsprovidedbythecompanycapital.

HarperCompanyacquiredamachinefor$26,000andhasrecordeddepreciationforthreeyearsusingthestraight-linemethodoverasix-yearlifeand$2,000residualvalue.Whatisthebookvalueofthemachineattheendofthreefullyearsofuse?

SmithCompanyfailedtorecorddepreciationofequipment.HowdoesthisomissionaffectSmith’sfinancialstatements?

HunterCompanyusesthedouble-declining-balancemethodtomeasuredepreciationonitscomputers.Whichitemisnotneededtocomputedepreciationforthefirstyear?

Whichofthefollowingaccountsisreportedontheincomestatement?

A. Themonthlyrentalcostofanofficebuilding.
B. Salestaxespaidinconjunctionwiththepurchaseofofficeequipment.
Costsincurredtorepairleaksinthebuildingroof.
D. Maintenancefeespaidwithfundsprovidedbythecompanycapital.