A company purchased a truck on October 1 of the current year at a cost of $40,000. The
truck is expected to last six years and has a salvage value of $2,200. The company’s
annual accounting period ends on December 31.
1) What is the depreciation expense for the current year, assuming the straight-line
method is used?
2) What is the depreciation expense for the current year, assuming the
double-declining-balance method is used?
The four categories of equity accounts are _____________________,
__________________, ______________________, and ______________________.
A company paid a cash dividend of $0.44 per share during the current year, and
reported 18,000 shares of common stock issued, and 2,000 common shares in treasury
stock during the current year. The year-end market price per share was $27.50.
Calculate the following: (1) total amount of cash dividends paid to common
shareholders, and (2) dividend yield.