1) On November 1, 2021, New Morning Bakery signed a $200,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022. New Morning Bakery should record which of the following adjusting entries at December 31, 2021? (Do not round your intermediate calculations.)

1. A) Debit Interest Expense and credit Interest Payable, $2,000.
2. B) Debit Interest Expense and credit Cash, $2,000.
3. C) Debit Interest Expense and credit Interest Payable, $6,000.

D) Debit Interest Expense and credit Cash, $6,000.

2) A company purchased a piece of equipment by paying $5,000 cash. A shipping cost of $400 to get the equipment to its factory was also incurred. The fair value of this equipment is $7,000. For what amount should the company record the equipment? Options: (7000, 7400, 5000, 5400)

3) The legal life of a patent is:

A) Forty years.

B) Twenty years.

C) Life of the inventor plus fifty years.

D) Indefinite.

4) Which of the following is true concerning goodwill?

1. A) Goodwill can never be recorded.
2. B) Goodwill is recorded when a company is purchased for more than the fair value of its identifiable net assets.
3. C) Goodwill is recorded when the market value of a company exceeds the fair value of its identifiable net assets.

D) Goodwill is recorded as a revenue in the income statement

5) Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the Social Security maximum base amount is $128,400, how much will be withheld during the year for Peterson's Social Security and Medicare taxes. (Round your answers to the nearest dollar amount.)

A) $2,610.

B) $10,571.

C) $13,770.

D) None of the other answer choices are correct.