Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year's depreciation would affect the financial statements? Balance Sheet Income Statement Assets = Liabilities + A. (32,000) Not affected B. (16,000) Not affected C. (36,000) Not affected D. (36,000) Not affected Multiple Choice O OOO Option D Option B Option C Option A Stockholders' Equity (32,000) (16,000) (36,000) (36,000) Revenue Not affected Not affected 16,000 Not affected 36,000 36,000 Not affected Expense 32,000 Net Income (32,000) (16,000) (36,000) (36,000) Statement of Cash Flows (32,000) Operating activity Not affected (36,000) Operating activity Not affected

Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year's depreciation would affect the financial statements? Balance Sheet Income Statement Assets = Liabilities + A. (32,000) Not affected B. (16,000) Not affected C. (36,000) Not affected D. (36,000) Not affected Multiple Choice O OOO Option D Option B Option C Option A Stockholders' Equity (32,000) (16,000) (36,000) (36,000) Revenue Not affected Not affected 16,000 Not affected 36,000 36,000 Not affected Expense 32,000 Net Income (32,000) (16,000) (36,000) (36,000) Statement of Cash Flows (32,000) Operating activity Not affected (36,000) Operating activity Not affected

Name: Flagler Company purchased equipment that cost $90,000. The equipment
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Description: Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choicesaccurately reflects how the recognition of

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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