1) When originally purchased, a vehicle costing $23,580 had an estimated useful life of 8 and an estimated salvage value of $1,900. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:

$5,588.00.

$2,710.00.

$5,420.00.

$2,878.00.

$10,840.00.

2) Smiles Entertainment had the following accounts and balances at December 31:

Account	Debit			Credit
Cash	$	12,100
Accounts Receivable		2,420
Prepaid Insurance		3,240
Supplies		1,420
Accounts Payable				$	6,050
Common Stock					6,160
Service Revenue					9,100
Salaries Expense		710
Utilities Expense		1,420
Totals	$	21,310		$	21,310

Using the information in the table, calculate the company's reported net income for the period.

$1,520.

$5,550.

$12,920.

$4,630.

$6,970.

3) Torino Company has 2,600 shares of $20 par value, 5.5% cumulative and nonparticipating preferred stock and 26,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $2,500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

$360.

$3,220.

$2,500.

$5,720.

$2,860.

4) In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net income for the year was	$	59,000
Accounts payable decreased by	$	25,000
Accounts receivable increased by	$	32,000
Inventories increased by	$	12,000
Cash dividends paid were	$	15,400
Depreciation expense was	$	27,000

Net cash provided by operating activities was:

$37,000.

$51,000.

$75,600.

$141,000.

$17,000.

5) A company issues 10% bonds with a par value of $129,000 at par on April 1, which is 4 months after the most recent interest date. The cash received for accrued interest on April 1 by the bond issuer is:

$7,525.

$1,075.

$8,600.

$2,150.

$4,300.