1) Vanguard Corp. purchased machinery with a cost of $470,000 on January 1, 2020. The machinery had a useful life of 5 years and a residual value of $30,000.

The machinery was expected to produce 150,000 units over its life. In 2020 and 2021, it produced 24,000 and 60,000 units, respectively.

What is accumulated depreciation for December 31, 2021, using the units of production method?

A) $70,400

B)$175,000

C) $223,600

D) $246,400

2) Vanguard Corp. purchased machinery with a cost of $470,000 on January 1, 2020. The machinery had a useful life of 5 years and a residual value of $30,000.

The machinery was expected to produce 150,000 units over its life. In 2020 and 2021, it produced 24,000 and 60,000 units, respectively.

What is depreciation expense for 2021, using the double declining balance method?

A) $112,800

B) $169,200

C) $188,000

D) $300,800

Zinger Inc. has a delivery truck which originally cost $23,000. It has a residual value of $5,000. The truck has a total life of 9 years, and was purchased 3 years ago. This year, the truck was used from January 1 until March 31. On April 1, the truck was sold.

If Zinger uses the straight-line method, what is the depreciation expense on the truck for this year (the year of sale)?

A) $500

B) $666

C) $1,500

D) $2,000

3) Zinger Inc. has a delivery truck which originally cost $23,000. It has a residual value of $5,000. The truck has a total life of 9 years, and was purchased 3 years ago. This year, the truck was used from January 1 until March 31. On April 1, the truck was sold.

Assume that Zingers accumulated depreciation on the truck at the time of sale was $8,000. If Zinger received $14,000 cash when the truck was sold, what amount of gain or loss was recognized?

A) $1,000 gain

B) $1,000 loss

C) $4,000 gain

D) $4,000 loss

4) Arbor Industries sold their old office furniture for cash, to make way for new replacement furniture. Their journal entry to record the sale will include:

A) A debit to accumulated depreciation and a credit to cash

B) A debit to accumulated depreciation and a credit to furniture

C) A debit to depreciation expense and a credit to cash

D) A debit to depreciation expense and a credit to furniture

5) A company includes warranties on all of its products sold. When is warranty expense recorded?

A) When the product under warranty is repaired

B) When the product under warranty is manufactured

C) When the customer pays for the product under warranty

D)When the product under warranty is sold

6) Harbor Manufacturing includes warranties on all of its products sold. Harbors warranty liability was $10,000 on January 1. During the year, Harbor made repairs under warranty of $12,000 had sales revenue of $750,000. If Harbor estimates that warranty costs are 2% of sales, what is the balance in the warranty liability account at December 31?

A) $10,000

B) $12,000

C) $13,000

D)$15,000