1. Sheffield Corp. purchased machinery that was installed and ready for use on January 3, 2020, at a total cost of $244000. Salvage value was estimated at $28000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2021, Sheffield should record depreciation expense on this machinery of

$63040.

$97600.

$58560.

$51840.

2. Sunland Trading Stamp Co. records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sunland's past experience indicates that only 75% of the stamps sold to licensees will be redeemed. Sunland's liability for stamp redemptions was $7610000 at December 31, 2020. Additional information for 2021 is as follows:

Stamp service revenue from stamps sold to licensees		$6050000
Cost of redemptions		4960000

If all the stamps sold in 2021 were presented for redemption in 2022, the redemption cost would be $4490000. What amount should Sunland report as a liability for stamp redemptions at December 31, 2021?

$6017500.

$7140000.

$12570000.

$8700000.

3. Sheffield Corp.s salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2021 is as follows:

		12/31/20			12/31/21
Employee advances		$	26000		$	36000
Accrued salaries payable			162000			?
Salaries expense during the year						1410000
Salaries paid during the year (gross)						1230000

At December 31, 2021, what amount should Sheffield report for accrued salaries payable?

$180000.

$126000.

$172000.

$342000.

4. Sheridan Company includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Sheridan $3 each. Sheridan estimates that 60 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:

		2020		2021
Bags of dog food sold		510000		600000
Leashes purchased		19000		24000
Coupons redeemed		130000		150000

The premium liability at December 31, 2020 is

$90750.

$68750.

$78750.

$66000.

5. A company offers a cash rebate of $1 on each $4 package of light bulbs sold during 2021. Historically, 10% of customers mail in the rebate form. During 2021, 3800000 packages of light bulbs are sold, and 203000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2021 financial statements dated December 31?

$203000; $177000

$380000; $380000

$177000; $177000

$380000; $177000