**Question:**A company may capitalize interest on all of the following assets during the construction period with the exception of which of the following?A. High-end manufactured inventory B. Land improvements C. New office building for employees D. Real estate development project intended for future sale **Options:**- O A - O D - O A and B - O C This question asks about the capitalizing of interest costs during the construction period, and which assets this applies to, with one exception. The format provides a list of asset types (A–D) and multiple-choice options to select the correct exception. Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a residual value of $6,000.Using the double-declining-balance method, depreciation for 2021 and the book value at December 31, 2021, would be:- ○ $26,400 and $39,600 respectively.- ○ $26,400 and $45,600 respectively.- ○ $28,800 and $37,200 respectively.- ○ $28,800 and $43,200 respectively.

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Answered: Cutter Enterprises purchased equipment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tinker Bell Company sold a delivery wing truck on March 1, 2022. Tinker had acquired the wing truck on January 1, 2019, for $ 52,000. At acquisition, Tinker had estimated that the truck would have a useful life of 6 years and a residual value of $4,000. On December 31, 2021, the truck had a book value of $ 28,000. Required: Prepare the journal entries to recognized the depreciation expense for 2022 prior to the sale and the sale of the truck assuming the truck sold at the following different prices (you will have 3 entries total): $32,000 26,000
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