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NEW QUESTION: 1
On January 1, Year 1, an entity purchased a machine for US $10,000. The estimated useful life was 10 years, with no residual value. The entity depreciates its property, plant, and equipment using the straight-line method. On January 1, Year 5, it was estimated that the machine had a remaining useful life of 3 years. Compute the entity's Year 5 depreciation expense for the machine.
A. US $6,000
B. US $3,000
C. US $1,000
D. US $2,000
The machine's net carrying amount at January 1, Year 5, is US $6,000$10,000 cost $4,000 accumulated depreciation for4 years). A change in accounting estimate is applied prospectively. Thus, 'depreciation expense is US $2,000 per year for the next 3 years.
NEW QUESTION: 2
When a corporation issues a nonconvertible debenture, what is the effect upon its net worth?
A. if decreases
B. if is unchanged
C. it increases
D. none of the above
Explanation: it is unchanged. The debentures add to liabilities and to cash (an asset) received from the sale. There is no effect on net worth.
NEW QUESTION: 3
Which of the following outputs will the below command produce? seq 1 5 20
A. 5 10 15 20
B. 1 6 11 16
C. 2 3 4 5
D. 1 2 3 4
5 10 15