1. Before a check authorization is issued, the following documents must be in agreement, except for the

a) Receiving report.

b) Purchase order.

c) Remittance advice.

d) Invoice.

2. Mitchell Corporation bought equipment on January 1, 2014 .The equipment cost $180,000 and had an expected salvage value of $30,000. The life of the equipment was estimated to be 6 years. The book value of the equipment at the beginning of the third year would be

a) $130,000

b) $150,000

c) $50,000

d) $180,000

3. Brevard Corporation purchased a taxicab on January 1, 2013 for $25,500 to use for its shuttle business. The cab is expected to have a five-year useful life and no salvage value. During 2014, it retouched the cab's paint at a cost of $1,200, replaced the transmission for $3,000 (which extended its life by an additional 2 years), and tuned-up the motor for $150. If Brevard Corporation uses straight-line depreciation, what annual depreciation will Brevard report for 2014?

a) $3,900

b) $5,100

c) $4,125

d) $4,100

4. On July 1, 2014, Fleming Company sells machinery for $120,000. The machinery originally cost $300,000, had an estimated 5-year life and an expected salvage value of $50,000. The Accumulated Depreciation account had a balance of $175,000 on January 1, 2014, using the straight-line method. The gain or loss on disposal is

a) $5,000 gain

b) $5,000 loss

c) $10,000 loss

d) $20,000 gain