1.

Which of the following subsequent expenditures would be capitalized?

Multiple Choice

None of these answer choices are correct.

Improvements that increase future benefits

Ordinary repairs and maintenance

Additions that maintain future benefits

2.

Kansas Enterprises purchased equipment for $80,500 on January 1, 2024. The equipment is expected to have a five-year service life, with a residual value of $7,050 at the end of five years. Using the double-declining balance method, depreciation expense for 2024 would be: (Do not round your intermediate calculations)

Multiple Choice

$29,380.

$32,200.

$16,100.

$25,150.

3.

When a company collects sales tax from a customer, the event is recorded by a debit to:

Multiple Choice

Cash and a credit to Sales Tax Payable.

Sales Tax Payable and a credit to Sales Tax Expense.

Sales Tax Payable and a credit to Cash.

Sales Tax Expense and a credit to Sales Tax Payable.