Estimated liabilities are ________.
A) obligations of an exact amount
B) obligations of an uncertain amount
C) always current liabilities
D) always long-term liabilities
Question 2
On November 1, 2011, Frigate Shipping Company bought equipment that cost 400,000, with an estimated useful life of 8 years and an estimated salvage value of 28,000.
The company uses the straight-line method of depreciation and has a fiscal year ending on October 31. For the year ended October 31, 2012, Frigate Company will report depreciation expense of ________.
A) 50,000
B) 33,333
C) 46,500
D) 31,000
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