Mitchell Corporation bought equipment on January 1, 2022. The equipment cost $12
ID: 2413109 • Letter: M
Question
Mitchell Corporation bought equipment on January 1, 2022. The equipment cost $120,000 and had an expected salvage value of $20,000. The life of the equipment was estimated to be 6 years. Straight-line depreciation was used The book value of Mitchell's equipment at the beginning of the third year would be: Select one: a. $120,000 b. $100,000 c. $86,667 d. $33,333 ? e. S66667 If Wesley Corporation has 80,000 shares of common stock authorized. 50,000 shares of common stock issued, and holds 12,000 shares of common stock as treasury stock, the total number of outstanding shares of Wesley Corporation amounts to Select one: a. 22,000 b. 26,000 ?. 38,000 d. 68,000 e. 18,000 Which of the following statements is true about a 2-for-1 stock split? Select one: a. Total contributed capital increases b. Par value per share is reduced to half of what it was before the split c. A stockholder with ten shares before the split owns thirty shares after the split d. The market price per share probably will increaseExplanation / Answer
Q1. Answer is C. $ 86667 Explanation: Cost of equipment 120000 Less: Salvavge value 20000 Depreciable amount 100000 Life 6 Annual depreciation 16666.67 Depreciation for two years 33333 Book value at beg of 3rd yr 86667 Q2. Answer is c. 38000 shares Explanation: Number of shares issued 50000 less: Held in treasaury stock 12000 Number of shares outstanding 38000 Q3. Answer is b. Par value per share is reduced to half of what it was before split.