A customer was injured when a furnace exploded following its faulty installation by a heating and cooling business. For the heating and cooling business, this is an example of

A) contingent liability.
B) completed operations liability.
C) products liability.
D) contractual liability.

Answer: B

Business

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On July 1, 2003, PLEE Corporation purchased factory equipment for $50,000. Salvage value was estimated at $2,000. The equipment will be depreciated over 10 years using the double-declining-balance method. Counting the year of acquisition as one-half year, PLEE should record 2004 depreciation expense of:

a. $8,640 b. $9,000 c. $8,000 d. $10,000

Business

China Imports currently has 2,000 shares of common stock outstanding. The firm has assets of $200,000 and total liabilities including preferred stock of $75,000. Calculate the book value per share of China Imports common stock

What will be an ideal response?

Business