1 Which of the three does not describe plant assets: O Tangible items O Actively used in operations O Sold as a part of daily operations O Useful for multiple accounting periods QUESTION 2 A machine was sold on April 1 in the 3rd year of it's life. It has a cost of $10,000 with a salvage value of $0 and a useful life of 5 years. The company uses straight line depreciation. In the journal entry to update depreciation for year 3 prior to disposal, what is the amount that the company would use (ie what is year 3 depreciation expense)? $2,000 $1,500 $1,000 $500 QUESTION 3 ABC Inc sold equipment that originally cost $50,000 for $30,000 cash. The accumulated depreciation on the equipment was $10,000. The company should recognize a $30,000 loss $10,000 loss O $10,000 gain O $0 gain or loss QUESTION 4 XYZ Co. purchases equipment at a cost of $150,000 with a 10-year life and a salvage value of $60,000. Estimated total units of production is 45,000 units. Year one actual units of production is 4,500. What is annual depreciation expense for the equipment under units-of-production depreciation? $15,000 $21,000 $9,000 $6,000