19If product X cost $50 and had a 4 percent failure rate, the estimated product warranty expense in a month when 1,000 units are sold would be a. $200. b. $50. ?.$20. d. $2,000. 20. Heidi wishes to deposit an amount into her savings account that will enable her to withdraw $800 multiplied by the present value of a single sum factor divided by the present value of a single sum, factor multiplied by the present value of an ordinary annuity factor. divided by the present value of an ordinary annuity factor @ 21. A company purchases land and a building on the land. The land is appraised at $80.000 and the builia .000 Ir the Land account is debited for $101,000, then the total purchase price for the land and building must have been a. $424,000. b. $416,000. c. $400,000. d. $520,000. Lester Company purchases a piece of equipment on Jan. 2, 20x7, for $30,000, The equipment has an estimated life of cight years or 50,000 units of production and an estimated residual value of $3,000 calendar fiscal year. The amount of depreciation to be recorded for 20x7, using the ble-declining-balancomethod, is a. $7,500. b. $5,000. c. $5,500. d. $4,500. disposed of on January 1. Assume that the truck was disposed of for $2,000 cash. The entry to record this event would include a 23. A truck that cost $12,000 and on which $9,000 of accumulated depreciation has been recorded was a. b. c. d. gain of $1,000. loss of $1,000. credit to Accumulated Depreciation for $9,000. credit to the Truck account for $3,000. 24. The cost of a natural resource is expensed in the year during which the resource is a. sold. b. paid for c. extracted d. purchased. UIBE ACC212 Financial Accounting /Geyer/Summer 2018