1.AT Company purchased a tractor at a cost of $60,000 on January 1, 2010. The tractor has an estimated residual value of $10,000 and an estimated life of 8 years. If AT uses the straight-line method, what is the asset's book value at January 1, 2014?
A. $41,250
B. $35,000
C. $25,000
D. Some other answer
Flyer Company has provided the following information prior to any year-end bad debt adjustment:
• Cash sales, $150,000
• Credit sales, $450,000
• Selling and administrative expenses, $110,000
• Sales returns and allowances, $30,000
• Gross profit, $490,000
• Accounts receivable, $110,000
• Sales discounts, $14,000
• Allowance for doubtful accounts credit balance, $1,200
2.Flyer prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. How much is bad debt expense? Answer
A.$5,500.
B.$4,300.
C.$6,700.
D.$4,240.
3.CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2014. During the year ended December 31, 2015, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders' equity as of December 31, 2015? Answer
A.$117,000.
B.$109,000.
C.$115,000.
D.$113,000.