1. PT A purchased a machine on January 1, 2017, for $240,000. At the date of acquisition, the machine had an estimated useful life of six years with no residual value. The machine is being depreciated on a straight-line basis. On January 1, 2020, PT A determined, as a result of additional information, that the machine had an estimated useful life of five years from the date of acquisition with no residual value. The amount of book value of machine that should be reported in statement of financial position at December 31, 2020 is...

a. $120,000 b. $80,000. c. $60,000 d. $240,000.

2. On December 31, 2020, the salaries expense of $5,000, incurred but unpaid, were not recorded. The effect of the omission of salaries expense would cause...

a. The balance of assets at December 31,2020 overstated $5,000. b. no effect c.2020 net income understated by $5,000. d. The balance of liabilities at December 31,2020 understated by $5,000.