12) ABC Company owns equipment with an original cost of $53,800 and accumulated depreciation of S26,350. If the equipment sold for $25,000, which of the following is the correct journal entry? a) Cash Loss on Sale of Equipment $25,000 2,450 Equipment $27,450 b) Cash $25,000 $26,350 Accumulated Depreciation Equipment Loss on Sale of Equipment $53,800 2,450 c) Cash $25,000 Equipment 553,800 Accumulated Depreciation Gain on Sale of Equipment 26,350 52,450 d) Cash $25,000 $26,350 2,450 Accumulated ion Loss on Sale of Equipment Equipment $53,800 13) ABC Co. sold equipment with an original cost of $80,000 and accumulated depreciation of $35,000. If the sale of the equipment generated a gain of $10,000, how much cash was received from the sale? a) $90,000 $55,000 c) $45,000 d) $70,000 14) Which of the following statements is FALSE? a) The concept of materiality allows companies to immediately expense small pieces of equipment that will last more than 12 months. b) The matching concept requires that as long-term assets are used to generate revenues, the cost of the asset must be matched against the revenues. c) When calculating depreciation, "useful life" refers to the number of years a company plans to use an asset-not the number of years until it wears out. d) Land is depreciated using the straight-line method with no salvage value. 15) Worth Company recently purchased an oil well for $2.0 million. This well is expected to produce 500,000 barrels of oil over its life. If Worth produced 100,000 barrels of oil in its first year, what would be the amount of expense? And what is the name of the expense? a) $400,000; amortization expense $400,000; depletion expense c) $20,000; amortization expense d) $20,000, depletion expense 3l Page