Bad Brads BBQ

Last Updated: 25 May 2023
Pages: 2 Views: 141

Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of $400 to get the equipment to its factory. The fair value of this equipment is $7,000. For what amount should Bad Brads BBQ record the equipment?  Research and development costs should be: Expensed in the period incurred. Expensed in the period they are determined to be unsuccessful.  Deferred pending determination of success. Expensed if unsuccessful, capitalized if successful.  Goodwill is: Amortized over the greater of its estimated life or forty years. Only recorded by the seller of a business.  The excess of the fair value of a business as a whole over the fair value of all net identifiable assets.  Recorded when created internally through advertising expense.  Which of the following is considered a "contra" account?  Unearned Revenue.  Goodwill.  Accumulated Depreciation. Costs of Good Sold.

Using the straight-line method, depreciation expense for 2012 would be: $12,000.  $11,000. $60,000.| None of the other answers are correct. Using the straight-line method, the book value at December 31, 2012 would be:  $44,000. $49,000.  $55,000.  $60,000.  Using the double-declining balance method, depreciation expense for 2012 would be:  $24,000.  $22,000.  $19,000. $20,000.  Using the double-declining balance method, depreciation expense for 2013 would be: $22,000.  $13,200. $14,400.  $24,000.

Berry Co. purchases a patent on January 1, 2012, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. the straight-line method, what is the amortization expense for the year ended December 31, 2013?  $0. $8,000.  $16,000.  $40,000.  Abbott Company purchased a computer that cost $10,000. It had an estimated useful life of 5 years and no residual value. The computer was depreciated by the straight-line method and was sold at the end of the fourth year of use for $3,000 cash. Abbott should record: a gain of $1,000. A loss of $1,000. Neither a gain nor a loss - the computer was sold at its book value.  Neither a gain nor a loss - the gain that occurred in this case would not be recognized.

Order custom essay Bad Brads BBQ with free plagiarism report

feat icon 450+ experts on 30 subjects feat icon Starting from 3 hours delivery
Get Essay Help

Cite this Page

Bad Brads BBQ. (2017, May 09). Retrieved from https://phdessay.com/vera-bradley/

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

plagiarism ruin image

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer