A machine with an original cost of $120,000 and no salvage value had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 8 years. Assuming the company uses straight-line depreciation, the amount of depreciation expense in year 5 is:

During a period of steadily rising costs, the inventory valuation method that yields the lowest reported net income is:

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $118,500 each calendar year. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee’s annual FICA taxes amount is:

A company has Salaries Expense of $2,000 per day and has five working days each week, Monday through Friday.  The company pays its employees on Friday for the days worked that week.  June 30 falls on a Wednesday.  When the company pays its employees on Friday, July 2nd, the journal entry would be:

A company using the gross method of accounting for purchases and a perpetual inventory system recorded the following entry: Accounts Payable 2,500        Merchandise Inventory        50        Cash                                 2,450 This entry reflects a:

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: $87,200  Net income$13,900  Depreciation expense$  6,400  Gain on sale of land$  3,950  Increase in merchandise inventory$  8,050  Increase in accounts payable  

In January of the current fiscal year, a company paid $36,000 for insurance coverage for the next three years.  After the first ten months of the insurance policy have lapsed, all of the following are true except:

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $95,250; Allowance for Doubtful Accounts, credit balance of $921. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year will be uncollectible?

Why do economists generally agree that: “Low inflation is better than deflation, which occurs during severe recessions.”

When Anders took out his first two-year membership with Maxima Gym in 2004, the fee was $540.00.  He renewed his membership three times; in 2006 for $580.00, in 2008, for $600.00, and again in 2010, for $640.00. What is the overall rate of inflation for Anders’ gym membership?