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question 26 eadsincorporatedacquired a new computer on january 1 2008 the total capi 4292506

Question

26. EadsIncorporatedacquired a new computer on January 1,2008. The total capitalized cost of the computer equipment was$315,000. Eads estimated that the equipment would be used for 8years before being sold for an estimated $43,000 salvage. Assumingthe use of straight-line depreciation, the total depreciationexpense for the year ended December 31, 2008 was:

a.$25,200

b. $34,000

c. $39,375

d. $15,750

      e. none of theabove

27. AlpharettaManufacturing acquired a new production machine onJanuary 3, 2006. The total cost of the machine was$69,300.Alpharetta estimated that the machinery would be used for53,900 hours before being sold for an estimated $1,925 salvage.Alpharetta uses the units-of-production method of depreciation.Assuming the machine was used for 7,900 hours during 2006, 9,150hours during 2007 and 17,400 hours during 2008, the carrying valueof the new machine  on January 2,2009 would be:

a. $43,062.50

b. $26,237.50

c. $44,292.85

d. $25,007.00

e. $1,925.00

28. During 2009 GatorLeasing generated cash from leasing, it?s major business activity,and sold an office building.   Which part(s) of the statement ofcash flows would be affected by these events?

                   a.   operatingactivities

                   b.   financingactivities

                   c.   investingactivities

                   d.   operatingand investing activities

                   e.   operatingand financing activities

29. ABC, Inc. had 250,000shares of common stock outstanding on January 1, 2008 and issued30,000 additional shares on August 1, 2008.  Net income for the year ended December 31,2008 was $1,968,750. The earnings per share equals:

                   a.   $5.51

                   b.   $6.41

                   c.   $6.80

                   d.   $7.03

                   e.   $7.50

30. Roberts Inc. hasgross margin equal to $20,000. During the year Roberts Inc.purchased $6,000 worth of raw material inventory. The salesrecorded during the year equaled $30,000. What is the value ofRoberts Inc. cost of goods sold?

a.No answer possible

b. $6,000

c. $10,000

d. $16,000

e $36,000

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