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Use the Following to Answer Questions

question 121

Multiple Choice

Use the following to answer questions
Farmer Company purchased equipment on January 1,2015 for $82,000.The machines are estimated to have a 5-year life and a salvage value of $4,000.The company uses the straight-line depreciation method.
-At the beginning of 2018,Furst revised the expected life to eight years.The annual amount of depreciation expense for each of the remaining years would be:

Understand the roles and responsibilities of key corporate officers and entities involved in financial reporting and oversight, including the CEO, CFO, audit committee, FASB, and SEC.

Identify and explain the components and importance of the summary of significant accounting policies in financial statements.

Distinguish between the direct and indirect methods of cash flow reporting.

Recognize the impact of net profit margin ratio and total asset turnover ratio on return on assets.

Definitions:

Consolidated Balance Sheet

A financial statement that combines the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Noncontrolling Interest

A minority interest in a subsidiary that is not owned by the parent company, representing shareholders' equity in subsidiaries not attributable, directly or indirectly, to a parent.

Foreign Currency

The money or legal tender issued by a country's government, which is used and traded internationally outside of the issuing country.

Nonmonetary Assets

Assets that are not in the form of cash or cannot be quickly converted into cash, such as property, plant, and equipment.