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NEW QUESTION: 1
A trucking company purchased a tractor-trailer for $150,000 to support its short-haul business The tractor-trailer will be in service for 5 years before it will be sold at $55;000. With annual fuel costs estimated at $12,000; what is the annual depreciation for the vehicle?
A. $30.000
B. $7,000
C. $11,000
D. $19.000
Answer: C
NEW QUESTION: 2
If prices of a product are falling the use of LIFO rather than FIFO will lead to:
A. higher working capital and higher net income.
B. higher working capital and lower net income.
C. lower working capital and higher net income.
Answer: A
Explanation:
COGS will be lower under LIFO in a period of falling prices leading to higher net income and higher tax payments. Working capital will be higher since the higher inventory value will outweigh the lower cash balance due to higher tax payments.
NEW QUESTION: 3
Refer to the exhibit.RI has an OSPF path to R2 and R3 for 10.1.0.0/24, but R1 has a routing entry for 10.1.0.0/24 from only one router at a time. Which option is the most likely cause?
A. R2 is using a filter list.
B. The R1 maximum-path is set to 1
C. R2 has a higher administrative distance.
D. R2 is using an offset-list.
Answer: B