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16. On July 1, 2014, Fleming Company sells machinery for $120,000. The machinery originally cost $300,000, had an estimated 5-year life and an expected salvage

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16. On July 1, 2014, Fleming Company sells machinery for $120,000. The machinery originally cost $300,000, had an estimated 5-year life and an expected salvage value of $50,000. The Accumulated Depreciation account had a balance of $175,000 on January 1, 2014, using the straight-line method. The gain or loss on disposal is A. $20,000 gain. B. $5,000 loss. C. $10,000 loss D. E. $5,000 gain. None of the above. 17. Plate Company holds an 8-month, sso,000, 10% note issued on January 1, 2014 by Dartmouth industries. If Dartmouth dishonors the note and does not pay it in full at maturity, which of the following will the journal entry to be made by Plate Company on maturity date include? A. Debit to Notes Receivable for $80,000. B. Credit to Notes Receivable for $85,333. C. Debit to Accounts Receivable for $80,000 D. Debit to Accounts Receivable for $85,333. E. Debit to Cash for $85,333. 18. Hopson Company incurred $6,000,000 of research and development costs in its laboratory to develop a new product. It spent $120,000 in legal fees for a patent granted on January 2, 2014. On July 31,2014, Hopson paid $160,000 for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2012? A. $6, 280,000. B. $6,120,000. c. $6, 160,000. D. $280,000 E. None of the above. The financial statements of the Melton Manufacturing Company reports net credit sales of$600,000, cost of goods sold of $375,000, average net receivables total $80,000, average inventory totals $110,000, and the allowance for doubtful accounts totals $4,300. What is the average collection period for accounts receivable in days? A. 96.1 B. 48.7 C. 36.5 19 D. 60.8 E. None of the above. 20. During 2014, Ronald Corporation reported net sales of $2,250,000, net income of $1,350,000, and depreciation expense of $150,000. Ronald also reported beginning total assets of $1,500,000, ending total assets of $2,250,000, plant assets of $1,200,000, and accumulated depreciation of $750,000. Ronald's asset turnover ratio is A. 1.5 times B. 1.2 times. C. 0.98 times D. 0.72 times. E. None of the above

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