Question :
51) On January 1, 2011, Swinger, Inc. purchases a batting : 1253165
51) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. What is the effect of this transaction on the company’s statement of cash flows for the year ended December 31, 2011?
A) Financing activity cash inflow of $240,000
B) Financing activity cash outflow of $(240,000)
C) Investing activity cash outflow of $(240,000)
D) The transaction will not be reported on the statement of cash flows.
52) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. What is the effect of this transaction on the company’s statement of cash flows for the year ended December 31, 2012?
A) Financing activity cash outflow of $(44,000)
B) Operating activity cash outflow of $(44,000)
C) Investing activity cash outflow of $(240,000)
D) The transaction will not be reported on the statement of cash flows in 2010.
53) On January 1, 2011, Swinger, Inc. purchases a batting machine for $240,000 that has an estimated useful life of 5 years and an expected residual value of $20,000. What will the company report on its income statement for the year ended December 31, 2012?
A) Financing activity cash outflow of $(44,000)
B) Equipment will be reported as an asset at a book value of $152,000.
C) Depreciation expense of $44,000
D) Depreciation expense of $88,000
54) On January 1, 2011, Beyers Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. Calculate the book value of the equipment that will be reported on the balance sheet dated December 31, 2012.
A) $205,000
B) $165,000
C) $160,000
D) $200,000
55) On January 1, 2011, Beyers Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. Calculate the amount of accumulated depreciation at December 31, 2012.
A) $40,000
B) $165,000
C) $205,000
D) $38,000
56) On January 1, 2011, Beyers Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. What will the company report on its statement of cash flows for the year ended December 31, 2011?
A) Operating activity cash outflow of $(205,000)
B) Operating activity cash outflow of $(20,500)
C) Investing activity cash outflow of $(205,000)
D) Financing activity cash outflow of $(205,000)
57) On January 1, 2011, Beyers Company pays $205,000 cash for factory equipment that has an estimated useful life of 10 years and an expected residual value of $5,000. What will Beyers report on its income statement for the year ended December 31, 2011?
A) Financing activity cash outflow of $(20,000)
B) Investing activity cash outflow of $(20,000)
C) Cash payment of $205,000
D) Depreciation expense of $20,000
58) Avatar, Inc. bought a machine on January 1, 2011 for $96,000. The machine is expected to last for 8 years, after which it will be worthless. How much depreciation expense will Avatar show on its income statement for the year ended December 31, 2011?
A) $96,000
B) $16,000
C) $12,000
D) $0. Depreciation expense does not appear on the income statement.
59) Avatar, Inc. bought a machine on January 1, 2011 for $96,000. The machine is expected to last for 8 years, after which it will be worthless. How much depreciation expense will Avatar show on its balance sheet at December 31, 2011?
A) $96,000
B) $16,000
C) $12,000
D) $0. Depreciation expense does not appear on the balance sheet.
60) Avatar, Inc. bought a machine on January 1, 2011 for $96,000. The machine is expected to last for 8 years, after which it will be worthless. How much accumulated depreciation will Avatar report at December 31, 2011?
A) $96,000
B) $16,000
C) $12,000
D) $0. Accumulated depreciation does not appear on the balance sheet.
