1. At the beginning of the year, a company purchased a new piece of machinery for a total cost of $100,000. The company estimates the machinery to have a useful life of 10 years and that at the end of 10 years they can sell the machinery for $15,000. What is the machinery's depreciable cost? a. $100,000 b. $85,000 c. $15,000 d. $8,500 2. In December, ABC, Co. sold $550,000 of product on account. It estimates that 5% will be uncollectible. At the end of the year, what is the Net Realizable Value of ABC's Accounts Receivable assuming they did not collect any of the $550,000 outstanding? a. $550,000 b. $27,500 c. $522,500 d. $500,000 3. Becker Co. borrowed $800,000 on July 1st, Year 1 at an interest rate of 5%. What amount should Becker record as interest expense for Year 1? a. $40,000 b. $20,000 c. $80,000 d. $30,000 4. A company sells $55,000 worth of product on account. What is the effect of this transaction? a. Debit Cash, Credit Sales Revenue b. Debit Sales Revenue, Credit Cash C. Debit Sales Revenue, Credit Accounts Receivable d. Debit Accounts Receivable, Credit Sales Revenue