Which would most likely use a perpetual inventory system

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Problem 1: Which of the following would most likely use a perpetual inventory system?

A) hardware store

B) shoe store

C) car dealership

D) bookstore

Problem 2: Cola Company purchased a bottling machine on October 1, 2018 for $250,000. The estimated useful life is 25 years and they are using straight-line depreciation. On October 1, 2019, they spent $46,000 on the machine to double its capacity and $5,000 on routine cleaning. The company's year end is September 30. What should the depreciation expense be at September 30, 2020?

A) $10,000

B) $30,000

C) $12,200

D) $11,917

Problem 3: Long-term capital assets with a(n) ___ may not be depreciable.

A) finite life

B) indefinite life

C) residual value

D) undefined value

 

Reference no: EM132953401

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