1. Regarding the retained earnings account, which of the following statements is INCORRECT? a-Net losses are the only item that decreases retained earnings. b-Net income is the only item that increases retained earnings. c-Other adjustments to retained earnings are usually relatively minor and relatively rare. d-Stock dividends decrease retained earnings. 2.Maki Company has the following data available: 425 Transaction Units Purchased Unit Cost Units Sold Beginning Inventory 750 $31 Oct. 1 Purchase 325 34 + Oct. 10 Sale Oct. 14 Purchase 450 38 Oct. 20 Sale 600 6000 Oct. 22 Purchase 400 Oct. 29 Sale If Maki Company uses a perpetual FIFO inventory system, the cost of ending inventory on October 31 is 525 $51,400 $14,625 $52,375 $15,600 3. A promotional item offered to buyers of specific products is called a. a service-type warranty b. an assurance-type warranty c. an accretion d. a premium 4. Gulf coast Company purchased a van on January 1, 2019, for $930,000. Estimated life of the van was five years, and its estimated residual value was $95,000, Gulf coast uses the straight-line method of depreciation. Calculate the book value of the van at the end of 2019. a. $763,000 b. $871,875 c. $835,000 d. $755,625