Smith Company purchased a tractor at a cost of $90,000 on January 1, 2013. The tractor has an estimated salvage value of $10,000 and an estimated life of 8 years. At the end of two years of service, Smith reevaluated the tractor's useful life. Management extended the useful life an additional four years, but estimated that the tractor would have no residual value at the end of this time. If the company uses straight-line depreciation, what amount would be recorded as the depreciation expense each year, beginning with the third year?

Marketing logistics involves getting the right product to the right customer in the right place at the right time at the right price. Which of the following is NOT included in this process?

A) planning the physical flow of goods and services B) implementing the plan for the flow of goods and services C) controlling the physical flow of goods, services, and information D) gathering customer's ideas for new products E) A and C

Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,000 and Stuart is $70,000. Bobbi sells his interest in the partnership to John for $50,000. The journal entry to record the admission of John as a new partner would include

A) a credit to John's capital for $40,000 B) a credit to Stuart's capital for $10,000 C) a credit John's capital for $50,000 D) a credit to John's capital for $40,000 and a credit to Stuart's capital for $10,000