Question

In: Accounting

14. Grove City Corp. On January 1, 2017, Grove City Corp. purchased a ship for $2,000,000....

14.

Grove City Corp.

On January 1, 2017, Grove City Corp. purchased a ship for $2,000,000. It has a ten-year useful life and a residual value of $50,000. The company uses the double-declining-balance method.

What was the depreciation expense for Grove City Corp. for the year ended December 31, 2018?

a.$320,000

b.$0

c.$400,000

d.$160,000

16.

Research and development costs are

a.capitalized and amortized over the periods that will probably benefit from the research and development.

b.treated as an expense when incurred.

c.capitalized but not amortized.

d.included with the cost of the patent resulting from the research and development.

22.

If a company purchases $3,200 worth of inventory with terms of 2/10, n/30 on March 3 and pays April 2, then the amount paid to the seller would be

a.$3,150.

b.$3,200.

c.$3,136.

d.$3,168.

Expert Solution

ekkarill92 answered 2 years ago

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