Tamara Muldoon received an invoice dated October 25th with terms of 2/10, n/30 EOM. If Tamara wishes to pay the bill on the last day of the discount period, what date would she pay the invoice?
A) December 10
B) November 30
C) November 4
D) November 10
Q. 2Growth Industries purchased a generator for 40,500. Delivery costs totaled 1,424 and handling costs were 2,626. The useful life is 6 years and the salvage value is 12,020. Using the straight-line depreciation method, calculate the book value at the end of year 4.
A) 15,860.65
B) 21,686.68
C) 22,863.32
D) 37,713.33
Q. 3Hyabuza Japanese Restaurant received an invoice, dated February 20, 2011, for supplies they ordered that had a list price of 2,700 from a supplier that offered a series discount of 15/8/4 and carried terms of 3/10, 1/15, n/30. How much should the restaurant remit if the bill is to be paid in full on March 1, 2011?
A) 1,966.13
B) 2,006.67
C) 2,700.00
D) 2,026.94
Q. 4Magnotti Floors purchased a floor sander for 3,550. Delivery costs totaled 225. The salvage value is 755 after 8 years. Using the straight-line depreciation method, calculate the book value at the end of year 5.
A) 1,662.50
B) 1,887.50
C) 2,412.50
D) 935.50
Q. 5A manufacturer of computer printers offers a series discount of 20/10/5. A second manufacturer of printers offers a series discount of 25/12/10. Assuming all other aspects of the products are the same, which manufacturer would offer the best discount?
A) The 20/10/5 discount because it results in a final discount of 68.4
B) The 20/10/5 discount because it results in a final discount of 31.6
C) The 25/12/10 discount because it results in a final discount of 40.6
D) The 25/12/10 discount because it results in a final discount of 59.4
Q. 6Plethora Farms purchased a greenhouse for 52,700. Delivery costs totaled 1,825 and handling costs were 3,000. The useful life is 10 years and the salvage value is 14,050. Using the straight-line depreciation method, calculate the book value at the end of year 4.
A) 31,256
B) 58,000
C) 22,000
D) 40,135
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