1.

Property, plant and equipment include

Multiple Choice

• Land

• Land improvements

• Buildings

• All of these

• Machinery and equipment

• 2

  On April 3, 2020, Rainbow Studios purchased a patent for $56,000. Its remaining legal life is 7 years and Rainbow Studios estimates that the patent will be useful for another 4 years. The correct adjusting entry to record amortization of the patent on December 31, 2020 is

  Multiple Choice

• Amortization Expense, Patent	14,000
  Accumulated Amortization, Patent		14,000

• Patent	10,500
  Accumulated Amortization, Patent		10,500

• Amortization Expense, Patent	10,500
  Accumulated Amortization, Patent		10,500

• Amortization Expense, Patent	8,000
  Accumulated Amortization, Patent		8,000

• Amortization Expense, Patent	6,000
  Accumulated Amortization, Patent

3.

When originally purchased, a vehicle had cost $23,000, with an estimated residual value of $1,500, and an estimated useful life of 8 years. After 4 years of straight-line depreciation, the estimated useful life was revised from 8 to 6 years, but with zero residual value. The depreciation expense in year 5 should be

Multiple Choice

• $6,125.00

• $5,543.75

• $10,750.00

• $2.687.50

• $2,856.25