1. On May 1, 2020, ABC Company purchased equipment costing $50,000. ABC records depreciation expense for the equipment at the rate of $1,000/month. What is the credit balance in ABC Company's accumulated depreciation account for this equipment on December 31, 2020?

2. If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck, the net effect is:

a. assets will be increased by $10,000.

b. equity will be reduced by $40,000.

c. assets will be increased by $40,000.

d. assets will be unchanged.

3. On March 20, 2020, Myers Company paid $600 cash for a 6-month insurance policy with coverage beginning on April 1. Myers prepares monthly financial statements. How much insurance expense should Myers recognize for the month of April, 2020? Enter expense as a positive number.