Question

Need help on accounting questions. , I just need the multiple choice answers...

Question 9: In the straight line depreciation formula you learned in this course:

A: the amount of charge (depreciation expense) will decrease each period as the depreciable base shrinks

B: two of the choices above represent correct statements

C: the numerator of the fraction represents the gross cost of the asset

D: salvage value (residual value) must be taken into account and this will necessarily increase the size of the reported expense

E: an equal charge against earnings will result each period

Question 10: Sally Driver operates and is the sole owner of a firm called OTS .OTS had 2011 revenues of $220,000, expenses of $140,000, and an income tax rate of 30 percent. Net income after taxes would be

A: $56,000

B: None of the above

C: $252,000

D: $24,000

E: $80,000

Answer 1

Q9 : Straight line depreciation is an depreciation of assets which is equal to all years. in salvage value is deducted from original cost of assets so expenses size decrease.

so answer is E: an equal charge against earnings will result each period

Q10 ) Net income = Revenue-expenses-Income tax expenses

= 220000-140000-(80000*30%)

Net income = 56000

so answer is a) 56000