1. If a machine has a cost of $40,000 and an accumulated depreciation of $20,000, what is the book value of the machine in the current year? 2. If we sell the machine in question 4 for $12,000, what is the amount of the gain or loss on the sale? 3. On August 7, 2019, David purchased equipment costing $70,000, with an estimated life of 5 years and an estimated salvage value of $6,800. Compute the depreciation expense David would recognize on this equipment in 2019, assuming the company uses the straight-line method: (Round to the nearest full month) 4. On January 24, 2019 Sweet Ice Cream Co. purchased equipment costing $190,000, with an estimated life of 6 years and an estimated salvage value of $45,000. Compute the depreciation expense Sweet would recognize on this equipment in 2019, assuming the company uses the 150% declining balance method, with no switching to straight line. (Round to the nearest full month) 5. Name two intangible assets 6. Which type of bond is fully guaranteed? 7. A lawsuit pending is a liability called 1. On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly instalments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1. Compute the total amount to be paid by Bradley over the 15-year life of the mortgage. 2. Refer to the above data. How much of the first payment made on December 31, Year 1, represents interest expense? 3. On April 1. year 1, Oranges Corporation issues $60 million of 10%, 10-year bonds payable at par. Interest on the bonds is payable semiannually each March 1 and September 1. The amount of cash paid to bondholders for interest during Year 1, is