1. Recording a capital expenditure results in a debit to a(n): a. capital account. b. asset account. c. expense account. d. liability account. 2. On March 5, 2023, Lamb Remodeling sells a piece of its equipment. Lamb Remodeling had initially purchased the equipment for $310,000 in a prior period. The company had recorded $270,000 in depreciation for this piece of equipment as of the date of sale. If Lamb Remodeling receives $30,000 cash when they sell the equipment, they will report a on their 2023 Income Statement; if they instead receive $55,000 cash when they sell the equipment, they will report a a. $40,000 loss; $40,000 loss. b. $10,000 gain; $15,000 loss. c. $10,000 loss; $15,000 gain. d. $30,000 gain; $55,000 gain. 3. Bear Corp. purchases new office furniture for $3,600,000 on January 1, 2023. Bear estimates that the furniture has a $200,000 residual value and a useful life of 8 years. Bear uses the straight-line method to record depreciation. Assume that on January 1, 2027, after 4 years, Bear realizes that the machine remaining useful life is 10 years and residual value is $100,000. A depreciation schedule would show depreciation expense for 2027. a. $425,000 b. $350,000 c. $300,000 d. $250,000 e. $180,000