1. On March 1 , Chapin Company purchased a new stamping machine for $5,000. Chapin paid cash for the machine. Other costs associated with the machine were: transportation costs, \$300; sales tax paid, \$200; and installation cost, \$100, What cost was recorded for the machine? ( 3 Marks) A. $5,000 B. $5,200 c. $5,500 D. $5,600 2. Belmont corporation made a basket purchase of land, a building and equipment, paying a total of $1,500,000. Market values for the assets were not available, but the appraised values were $300,000 for the fand, $900,000 for the building. and \$600,000 for equipment. What amounts should be recorded in the Land, Building, and Equipment accounts, respectively? (3 Marks) 2. Belmont corporation made a basket purchase of land, a building and equipment, paying a total of $1,500,000. Market values for the assets were not available, but the appraised values were $300,000 for the land, $900,000 for the building and $600,000 for equipment. What amounts should be recorded in the Land, Building, and Equipment accounts, respectively? ( 3 Marks) A. $300,000,$900,000, and $600,000 B. $1,500,000,$0, and $0. C. $250,000,$750,000, and $500,000 D. $500,000,$500,000, and $500,000 3. What is an extraordinary repair to a building? A. It is a revenue expenditure and it is debited to an expense account. B. It is a capital expenditure and it is debited to an asset account. C. It is a capital expenditure and it is debited to an expense account. D. It is a revenue expenditure and may be debited to accumulated depreciation. 5. AA Riser owns machinery for moving and delivering plants to its customers. The recorded cost of the machinery is $38,000. It is estimated that the machinery will be able to move 120,000 plants over its life. The company depreciates the machinery using straight-line depreciation over a useful life of twelve years and an estimated residual value of $2,000. The amount that will be charged annually as depreciation will be: ( 3 Marks) A. $3,167 B. $3,000 C. $3,800 D. $3,600 6. Nadler inci purchased equipment for $48,000, and estimated that the equipment will have a $4,000 residual value at the end of its 8-year useful life. Using the double-declining-balance method, the depreciation expense for the third year would be (5 Marks) A. $9,000 B. 56,750 C. $6,188 D. $5,500 7. A machine, acquired for a cash cost of $6,000, 15 being depreciated on a straight-line basis of $900 per year. The residual value was estimated to be 10% of cost. What is the estimated useful life? ( 3 Marks) A. 3 years 7. A machine, acquired for a cash cost of $6,000, is being depreciated on a straight-line basis of $900 per year. The residual value was estimated to be 10% of cost. What is the estimated useful life? (3 Marks) A. 3 years B. 4 years c. 5 years D. 6 years 8. A machine that cost $72,000 has an estimated residual value of $6,000 and an estimated useful life of 5 years or 30,000 hours. Using the units-of-production method, the depreciation expense for the second year, during which the machine was used 5,000 hours, would be (3 Marks) A. $14,400 B. $13,200 C. $12,000 D. $11,000 9. Marker Steel purchased a machine on January 1, 20X1, at a cost of $380,000 with an estimated residual value of $30,000 at the end of its estimated useful life of eight years. On January 1, 20x3, Marker Steel estimates that the machine only has a remaining life of five years and a residual value of $20,000. Marker steel uses straight-line amortization. Depreciation expense for 203 would be: (3 Marks) 9. Marker Steel purchased a machine on January 1,201, at a cost of $380,000 with an estimated residual value of $30,000 at the end of its estimated useful life of eight years. On January 1, 20x3, Marker Steel estimates that the machine only has a remaining life of five years and a residual value of $20,000. Marker Steel uses straight-line amortization. Depreciation expense for 203 would be: ( 3 Marks) A. $54,500 B. $55,000 C. $48,500 D. $57,000 10. Kovacic Company purchased a computer that cost $10,000. It had an estimated useful life of five years and residual value of $0 The computer was depreciated by the straight-line method and was sold at the end of the fourth year of use for $3,000 cash. What should Kovacic record? (2 Marks) A. A gain of $1,000. B. A loss of $1,000. C. Neither a gain nor a loss-the computer was sold at its book value. D. Neither a gain nor a loss-the gain that occurred in this case would not be recognized 0. Kovacic Company purchased a computer that cost $10,000. It had an estimated useful life of five years and residual value of $0. The computer was depreciated by the straight-line method and was sold at the end of the fourth year of use for $3,000 cash. What should Kovacic record? (2 Marks) A gain of $1,000. 3. A loss of $1,000. Neither a gain nor a loss-the computer was sold at its book value. 2. Neither a gain nor a loss-the gain that occurred in this case would not be recognized 11. On July 1, 20x0, FEDWHY sold a truck for $10,000. The company originally paid $28,000 on June 30,207 and has recorded accumulated depreciation on it to date of $15,000, (3 Marks) Record the Sale