Depreciation on the furniture and fixtures for the year
The note payable is dated June 30, 2012 and is due on June 30, 2014. Interest at 6% is payable annually on June 30. Depreciation on the furniture and fixtures for the year is $22,000. The furniture and fixtures originally cost $320,000.
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Assume that, other than factory utilities, all direct material, direct labor, and overhead costs for Tamra Corp. were the same for January and February 2013. Will cost for the two months differ? How can such differences be avoided?
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Companies may use either the percent-of-sales method or the aging-of-accounts receivable method to estimate uncollectible receivables. Which method do you think is best? Why?
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During January 2012, Wells, Inc. acquired 30% of the outstanding common stock of Wilton Co. for $1,400,000. This investment gave Wells the ability to exercise significant influence over Wilton.
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