Question

38.

Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $9,100 net loss. Zach Company's entry would include a

a.credit to a loss account for $4,095

b.debit to the investment account for $4,095

c.credit to cash for $4,095

d.credit to the investment account for $4,095

43.

A machine with a cost of $55,000 has an estimated residual value of $4,085 and an estimated life of 5 years or 19,287 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

a.$11,000

b.$13,200

c.$20,366

d.$22,000

Answer 1