1. Tony Tools Company has a December 31 year end. The company received its property tax bill...
Question:
1. Tony Tools Company has a December 31 year end. The company received its property tax bill for 2021 on March 1, 2021. According to the bill, taxes of $24,000 for the year ended December 31, 2021 are due by April 30, 2021. On March 1, Tony will record property tax expense of
$12,000. | ||
$8,000. | ||
$24,000. | ||
$4,000. |
2. Beaches Ltd. reviews its assets every fiscal year for potential asset impairments. In the current year Beaches realized through its impairment assessment that a specialized machine has a recoverable amount of $360,500. This asset carries a cost of $890,000 and up-to-date accumulated depreciation of $549,200. What amount would be reported as an impairment loss on Beaches Ltd. current income statement at year end?
$340,800 | ||
$360,500 | ||
$19,700 | ||
$0 |
3. A truck was purchased for $15,000, and it was estimated to have a $3,000 residual value at the end of its useful life. Monthly depreciation expense of $250 was recorded using the straight-line method. The annual depreciation rate is
20%. | ||
25%. | ||
2%. | ||
8%. |
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak