Vera Bradley

Topics: Depreciation, Generally Accepted Accounting Principles, Amortization Pages: 2 (386 words) Published: October 23, 2012
Bad Brads BBQ purchased a piece of equipment by paying $5,000 cash. They also incurred a shipping cost of $400 to get the equipment to its factory. The fair value of this equipment is $7,000. For what amount should Bad Brads BBQ record the equipment? | $5,000.|

| $5,400.|
| $7,000.|
| $7,400.|

Research and development costs should be:
| Expensed in the period incurred.|
| Expensed in the period they are determined to be unsuccessful.| | Deferred pending determination of success.|
| Expensed if unsuccessful, capitalized if successful.|

Goodwill is:
| Amortized over the greater of its estimated life or forty years.| | Only recorded by the seller of a business.|
| The excess of the fair value of a business as a whole over the fair value of all net identifiable assets.| | Recorded when created internally through advertising expense.|

Which of the following is considered a "contra" account?
| Unearned Revenue.|
| Goodwill.|
| Accumulated Depreciation.|
| Costs of Good Sold.|

Using the straight-line method, depreciation expense for 2012 would be: | $12,000.|
| $11,000.|
| $60,000.|
| None of the other answers are correct.|

Using the straight-line method, the book value at December 31, 2012 would be: | $44,000.|
| $49,000.|
| $55,000.|
| $60,000.|

Using the double-declining balance method, depreciation expense for 2012 would be: | $24,000.|
| $22,000.|
| $19,000.|
| $20,000.|

Using the double-declining balance method, depreciation expense for 2013 would be: | $22,000.|
| $13,200.|
| $14,400.|
| $24,000.|
Berry Co. purchases a patent on January 1, 2012, for $40,000 and the patent has an expected useful life of five years with no residual value. Assuming Berry Co. uses the straight-line method, what is the amortization expense for the year ended December 31, 2013? | $0.|

| $8,000.|
| $16,000.|
| $40,000.|
Abbott...
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