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On Jan 1, 2017, Kevin Co. purchased machinery. The machinery has an estimated useful life of...

On Jan 1, 2017, Kevin Co. purchased machinery. The machinery has an estimated useful life of nine years and an estimated residual value of $45,000. Kevin Co. uses double-declining balance depreciation for all their machinery, and recorded $77,000 depreciation expense for 2017. The acquisition cost of the machinery was

1)

$346,500.00

2)

$738,000.00

3)

$391,500.00

4)

$685,000.00

Which of the following statement regarding not-for-profit (NPO) organizations is false?

1)

Unlike for-profit corporations, NPOs have no owners.

2)

NPOs are generally tax-exempt.

3)

The primary mission for NPO is to provide services to meet the needs of its members.

4)

Net income is an effective indicator of NPOs' profitability.

When a company is unlikely to lose the lawsuit, the company

1)

must be recognized as a provision, and disclosure of the provision is also required.

2)

does not need to be recognized as a provision, and no disclosure is required.

3)

does not need to be recognized as a provision, but disclosure is required.

4)

must be recognized as a provision, but no disclosure is required.
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Answer #1
Depreciation expense $     77,000
Acquisition cost ($77,000/2*9) $   346,500

Answer is 1. $346,500

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