11 ABC Company on Jan 1, 2021 purchased a delivery van for $24,000. To complete the purchase the company also incurred a $300 shipping cost and $1,200 sales tax. The company estimates that at the end of its four-year service life, the van will be worth $4,000. During the four-year period, the company expects to drive the van 100,000 miles Actual miles driven each year were 20.000 miles In year 1,25,000 miles in year 244.000 miles in year.3, and 55,000 miles in year 4 Required: 00:4131 Using Straight-line depreciation method, what is the annual depreciation expense? O $5.500 O $5,000 $6,000 O $5,300 Using the double-declining balance method, what are the amounts of depreciation expense for year 2 Phan TO $6.500 $6,000 $5.500 O $5.000 Using activity-based depreciation method, what is the balance of accumulated depreciation at the end of yean:32. e $19.580 O $9.680 $17,800 O $8,800 Suppose that the company decided on December 31, 2022 (Year 2) thaithe useful life of the van will be 5 years totalinstead of 4 years total) Assume that the company uses the straight-line methd and the change will become effective in 2023. What will be the amount of depreciation expense In 2023 (year 3)? $3.567 $4.400 $3,333 @ $4.000 Using the Information below, calculate net cash flows from financing acvities. 14 Net income Receive cash from issuing stock Pay cash for equipment Increase in accounts receivable Depreciation expense Increase in accounts payable Receive cash from sale of land Pay cash dividends $120,000 89,090 90,000 10,990 $ 30,000 5,898 75,898 20,000 Multiple Choice $60,000 $(15.000). O $100,000 O $80.000 ABC Company has the following beginning balances in its stockholdershequity accounts on January 1, 2021. Common Stock ($2 par value). $1,200; Additional Pald-in Capital, $4.200: Retalned Earnings, $25,000, Total Stockholders' equlty, $31400. ABC Company has the following transactions affecting stockholders' equity In 20211 May 18 Issues 228 additional shares of $2 par value common stock for $15 per share.. May 31 Purchases se shares of treasury stock for $40 per share. July 1 Declares a cash dividend of $2 per share to all stockholders of record on July 15. Hint: Dividends are not paid on treasury stock. July 31 Pays the cash dividend declared on July 1. August 10 Resells 25 shares of treasury stock purchased on May 31 for $52 per-share. December 31 Net income for the year ended December 31, 2021, is $9ee. Required: How many shares of common stock have been issued in total? 0820 1420 770 1370 What is the balance of Retained Earnings on December 31, 20212 O $25,360 $24,160 $24,060 $26,560 What is the debit) balance of the Treasury Stock ound PROS ecembe erB1 o $1,000 O $700 $1,300 O $2,000 HE 3 IN HALAT BE ME F X What is the balance of Additional Pald-In Capital on December 31, 20213 www O 57.360 $6,760 S7200 $4.940