Question

High Step Shoes had annual revenues of $190,000, expenses of $106,200, and paid dividends of $20,000 during the current year. The retained earnings account before closing had a balance of $302,000. The Net Income for the year is:

A company has beginning inventory of 12 units at a cost of $12 each on February 1. On February 3, it purchases 22 units at $14 each. 16 units are sold on February 5. Using the periodic FIFO inventory method, what is the cost of the 16 units that are sold?

Martin Company purchases a machine at the beginning of the year at a cost of $66,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 4 years with a $4,000 salvage value. Depreciation expense in year 4 is:

Mohr Company purchases a machine at the beginning of the year at a cost of $25,000. The machine is depreciated using the straight-line method. The machine’s useful life is estimated to be 8 years with a $7,000 salvage value. The book value of the machine at the end of year 2 is:

Mohr Company purchases a machine at the beginning of the year at a cost of $29,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine for 5 years, during which time it anticipates producing 55,000 units. The machine is estimated to have a $7,000 salvage value. The company produces 9,500 units in year 1 and 6,500 units in year 2. Depreciation expense in year 2 is:

Answer 1

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