Robin Blind,Inc.recorded the following entries during the year.Put an X in the appropriate box to indicate whether each entry caused net income and total assets to be overstated,understated,or correctly stated.
1.Recorded depreciation for the year using $0 salvage value when the salvage value was expected to be $5,000.
2.Depreciated its airplanes over a life of 35 years,which is 10 years longer than the average life of airplanes.
3.Recorded ordinary repairs as capital expenditures.
4.Recorded the purchase of patents as an expense.The purchase should have been capitalized.
5.Recorded its research and development costs as expenses.

Question

Robin Blind,Inc.recorded the following entries during the year.Put an X in the appropriate box to indicate whether each entry caused net income and total assets to be overstated,understated,or correctly stated.
1.Recorded depreciation for the year using $0 salvage value when the salvage value was expected to be $5,000.
  2.Depreciated its airplanes over a life of 35 years,which is 10 years longer than the average life of airplanes.
  3.Recorded ordinary repairs as capital expenditures.
  4.Recorded the purchase of patents as an expense.The purchase should have been capitalized.
  5.Recorded its research and development costs as expenses.

Quizplus · Accepted Answer

The Answer of Robin Blind,Inc.recorded the following entries during the year.Put an X in the appropriate box to indicate whether each entry caused net income and total assets to be overstated,understated,or correctly stated.
1.Recorded depreciation for the year using $0 salvage value when the salvage value was expected to be $5,000.
  2.Depreciated its airplanes over a life of 35 years,which is 10 years longer than the average life of airplanes.
  3.Recorded ordinary repairs as capital expenditures.
  4.Recorded the purchase of patents as an expense.The purchase should have been capitalized.
  5.Recorded its research and development costs as expenses.