ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 159

The book value of a plant asset is

The asset turnover ratio is computed by dividing

On September 19, 2014, Markham Co. purchased machinery
for $285,000. Salvage value was estimated to be $15,000. The
machinery will be depreciated over eight years using the sumof-the-years'-digits method. If depreciation is computed on the
basis of the nearest full month, Markham should record
depreciation expense for 2015 on this machinery of

In 2014, Bargain shop reported net income of $5.7 billion, net
sales of $175 billion, and average total assets of $70 billion.
What is Bargain shop's asset turnover ratio?

In 2006, Jarrett Company purchased a tract of land as a
possible future plant site. In January, 2014, valuable sulphur
deposits were discovered on adjoining property and Jarrett
Company immediately began explorations on its property. In
December, 2014, after incurring $800,000 in exploration