1. Equipment was purchased for $137500. Freight charges amounted to $5500 and there was a cost of $19000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $30000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

a. 26400

b. 21500

c. 22600

d. 32400

2. Tamarisk, Inc. purchased a delivery truck with a $48000 list price. The company was given a $4500 cash discount by the dealer, and paid $3000 sales tax. Annual insurance on the truck is $1900. As a result of the purchase, by how much will Tamarisk, Inc. increase its truck account?

a. 48000

b. 43500

c. 48400

d. 46500

3. A company sells a plant asset that originally cost $375000 for $110000 on December 31, 2017. The accumulated depreciation account had a balance of $150000 after the current year's depreciation of $37500 had been recorded. The company should recognize a

a. 265000 loss on disposal

b. 115000 gain on disposal

c. 115000 loss on disposal

d. 77500 loss on disposal