1. A gain on the disposal of an asset occurs when the:

asset's book value is greater than the selling price.asset's cost is greater than the asset's accumulated depreciation.selling price is greater than the asset's book value.accumulated depreciation is greater than the asset's book value.

2. A company purchased office equipment for $24,500 and paid $1,470 in sales tax, $550 for installation, $3,200 for a needed adjustment to the equipment, and $2,600 for supplies that will be used for periodic routine maintenance. How should the company record this transaction? Debit Equipment $24,500, debit Repairs and Maintenance Expense for $5,220, debit Supplies for $2,600, and credit Cash for $32,320 Debit Equipment for $29,720, debit Supplies for $2,600, and credit Cash for $32,320 Debit Equipment for $25,970, debit Repairs and Maintenance Expense $3,750, debit Supplies for $2,600, and credit Cash for $32,320 Debit Equipment and credit Cash for $32,320

3. A company purchased property for $100,000. The property included a building, equipment and land. The building was appraised at $62,000, the land at $45,000, and the equipment at $18,000 for a total appraised value of $125,000. What is the amount of cost to be allocated to the building in the accounting records? $0 $49,600 $62,000 $100,000

4. The straight-line depreciation method: reports an equal amount of depreciation expense each year. reports a higher amount of depreciation expense in the early years of an asset's use. reports more depreciation expense in a year when an asset is heavily used and less in a year when the asset is hardly used at all. can be used only by small companies.