Capital expenditures, depreciation, and disposal merton company purchased a building on january 1, 2016, at a cost of $364,000. merton estimated that its life would be 25 years and its residual value would be $14,000 on january 1, 2017, the company made several expenditures related to the bui ing. the entire bulding was parted and mors were etished at ? oost of s21,000. a federal agency rea red m to to i stat additional pollution control devices in the building at a cost of s42,000, with the new devies, merton beleved k wai pombe to etend the-ot the butting by in 2018, merton altered its corporate strategy dramatically. the company sold the building on april 1, 2018, for $392,000 in cash and relocated all operetions to another state.
1. determine the depreciation that should be on the income statement for 2016 and 2017, 1614,000 2017 2. explain why the cost of the pollution control equipment was not expensed in 2017
a. the asset was capitalized because it provided a current year tax advantage.
b. since the pollution control equipment has an unknown life, the asset was capitalized.
c since the pollution control equipment extended the lide of the asset, the asset was capitalized.
d. extending the life of the asset makes no difference on whether to expense or capitalixre, so the company chose to capitalize ifor lower taxes in the ourrent year c v 3.
what amount of gain or loss did merton record when it sold the building? do not round intermed ate calculations what amount of gain or loss would have been reported if the pollution control equipment had been expensed in 2017? 59,500 | gain v'

Homestead jeans co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. monthly fixed costs are $54,000, and variable costs are $29 per unit. the present selling price is $42 per unit. on november 12 of the current year, the company received an offer from dawkins company for 18,000 units of the product at $32 each. dawkins company will market the units in a foreign country under its own brand name. the additional business is not expected to affect the domestic selling price or quantity of sales of homestead jeans co. a. prepare a differential analysis dated november 12 on whether to reject (alternative 1) or accept (alternative 2) the dawkins order. if an amount is zero, enter zero "0". for those boxes in which you must enter subtracted or negative numbers use a minus sign.

Barbara jones opened barb’s book business on february 1, 2010. the company specilizes in editing accounting textbooks. you have been hired as manager. your duties include maintaining the company’s financial records. the following transactions occurred in february , the first month of operations. a. received shareholders' cash contributions on february 1 totaling $16,000 to form the corporation; issued 1,000 shares of common stock. b. paid $2,400 cash on february 2 for three months' rent for office space. tip: for convenience, simply record the full amount of the payment as an asset (prepaid rent). at the end of the month, this account will be adjusted to its proper balance. c. purchased and received supplies on february 3 for $300 cash. d. signed a promissory note on february 4, payable in two years; deposited $10,000 in the company's bank account. e. on february 5, paid cash to buy equipment for $2,500 and land for $7,500. f. placed an advertisement in the local paper on february 6 for $425 cash. g. recorded sales on february 7 totaling $1,800; $1,525 was in cash and the rest on accounts receivable. h. collected accounts receivable of $50 from customers on february 8. i. on february 9, repaired one of the computers for $120 cash. tip: most repairs involve costs that do not provide additional future economic benefits. j. incurred and paid employee wages on february 28 of $420.required: set up appropriate t-accounts for cash, accounts receivable, supplies, prepaid rent, equipment, furniture and fixtures, notes payable, contributed capital, service revenue, advertising expense, wages expense, and repair expense. all accounts begin with zero balances. tip: when preparing the t-accounts, you might find it useful to group them by type: assets, liabilities, stockholders’ equity, revenues, and expenses.2. record in t-accounts the effects of each transaction in february, referencing each transaction in the accounts with the transaction letter. show the unadjusted ending balances in the t-accounts. 3. prepare an unadjusted trial balance at the end of february.4. refer to the revenues and expenses shown on the unadjusted trial balance. based on this information, write a short memo offering your opinion on the results of operations during the first month of business.

Which maxim is being neglected in the following conversation? eli: how did you do at the track meet? caleb: i came in second place! eli: congratulations! what was your time? caleb: six minutes, four seconds. the guy who won only beat me by three seconds. eli: really? katie said the winning time was under 6 minutes. caleb: oh, well, he might have beat me by five seconds. a)maxim of quantity b)maxim of quality c)maxim of relevance d)maxim of manner