1. At the time of acquisition, long-lived assets are recorded at

		lower of cost and market.
		amortized cost.
		at cost.
		at fair market value.

2. New York Corporation has the following shareholders' equity on December 31, 2021: Shareholders' equity Share capital $10 convertible preferred shares,

10,000 shares authorized, 5,000 shares issued

$0,570,000

Common shares, no par value,

200,000 shares authorized, 90,000 shares issued

1,800,000

Total share capital

2,370,000

Retained earnings

450,000

Total shareholders' equity

$2,820,000

If one preferred share is convertible into 10 common shares, how many common shares are issued when 500 preferred shares are converted?

		500
		5,000
		50
		5

3. Lois Ltd. purchased equipment for $30,000 on January 1, 2019, and will use the diminishing-balance method of depreciation. It is estimated that the equipment will have a 3-year life and a $3,000 residual value at the end of its useful life. The amount of depreciation expense recognized in the year 2021 will be

		$4,800.
		$6,000.
		$2,400.
		$4,444.