1. Marigold Company purchased a new van for floral deliveries on January 1, 2020. The van cost $60000 with an estimated life of 5 years and $14100 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the depreciation expense for 2020?

$9180

$24000

$12000

$18360

2. A company decides to exchange its old machine and $231900 cash for a new machine. The old machine has a book value of $188500 and a fair value of $210200 on the date of the exchange. The cost of the new machine would be recorded at

$442100.

$420400.

$398700.

cannot be determined.

5.A company purchased land for $91000 cash. Real estate brokers' commission was $6000 and $6900 was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land would be recorded at

$103900.

$69000.

$91000.

$109900.

7. Bramble Company incurred $572000 of research and development cost in its laboratory to develop a patent granted on January 1, 2021. On July 31, 2021, Bramble paid $84800 for legal fees in a successful defense of the patent. The total amount debited to Patents through July 31, 2021, should be:

$572000.

$487200.

$656800.

$84800.