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Test: CPA Financial Accounting and Reporting (FAR)
1. | A company buys 200 doors for $75 each at the beginning of Year 1. On the same day, the company buys an other 300 doors for $85 each. None of the doors are expected to have any salvage value. The cheaper doors have a useful life of 7 years and the more expensive doors have a useful life of 9 years. In Year 2, the company sells one of the cheaper doors for $90 and one of the more expensive doors for $120. All doors were put into a single group for depreciation purposes. How much gain will the company recognize on the sale of the doors in Year 2? |
$0
$44.44
$25.71
$70.44
Chandni
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Certified Tutor
Miami University-Middletown, Bachelor of Science, Biology, General. Wright State University-Main Campus, Master of Science, A...
Andrew
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Concordia College - Moorhead, Bachelor of Chemistry, Chemistry. University of Notre Dame, Doctor of Science, Organic Chemistry.
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