Find the situation from below that the named company not record any depreciation expense on the assets described.

Question

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Answer 1

Question

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

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Oriole Company sells product 2005WSC for $55 per unit and uses the LIFO method. The cost of one unit of 2005WSC is $52, and the replacement cost is $51. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?

Answer 2

Question

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

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Answer 3

Question

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

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Answer 4

Question

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

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Answer 5

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

Answer 6

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

Answer 7

Chapter 9, Problem 1STQ

To determine

Find the situation from below that the named company not record any depreciation expense on the assets described.

Answer 8

Expert Solution & Answer

Answer to Problem 1STQ

c) Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.”

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

a. Commuter Airline is required by law to maintain its aircraft in “as good as new” condition. Commuter Airline records depreciation expense on its aircrafts. Hence, it is not the correct answer.
b. Metro Advertising owns an office building that has been increasing in value each year since it was purchased. It records the depreciation expense on building. Hence, it is not the correct answer.
c. Computer Sales Company has in inventory a new type of computer, designed “never to become obsolete.” This company does not record any depreciation expense on new type of computer because for this company new type of computer is an inventory. Depreciation is not recorded on the inventory. Hence, it is the correct answer.
d. Option c is the correct answer. Thus, the option (d) none of the above is incorrect answer.

Answer 12

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Find the situation from below that the named company not record any depreciation expense on the assets described.

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Find the situation from below that the named company not record any depreciation expense on the assets described.

Answer to Problem 1STQ

Explanation of Solution

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