1.A truck costing $46500was destroyed during a flood. At the date of the flood, the accumulated depreciation on the truck was $21500. An insurance cheque for $35800was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

gain on disposal of $10800.

credit to the Truck account of $10700.

credit to the Accumulated Depreciation account for $21500.

gain on disposal of $25000.

2.A factory machine was purchased for $20200on March 1, 2021. It was estimated that it would have a $4600residual value at the end of its 5-year useful life. It was also estimated that the machine would be run26000hours in the 5 years. If the actual number of machine hours run in 2021 was4000hours and the company uses the units-of-production method of depreciation, the amount of depreciation expense for 2021 would be

$2257.

$2400.

$3108.

$4040.

3.A company purchased property for $302000. The property included an acre of land valued at $50000, a building valued at $150000, and equipment valued at $120000. The equipment will be recorded at a cost of (Round intermediate calculations to 4 decimal places and final answer to 0 decimal place.)

$120000.

$170000.

$150000.

$113250.

4.On July 1, 2021 TheConcordCo. sells equipment for $22700. The equipment originally cost $60300, had an estimated 5-year life and an expected residual value of $10800. The accumulated depreciation account had a balance of $35800on January 1, 2021, using the straight-line method. The gain or loss on disposal is

$2740gain.

$3150loss.

$2740loss.

$3150gain.

5.CheyenneCompany purchased land for $115400with the intentions of constructing a new operating facility. The land purchase included a dilapidated building that was removed at a cost of $15000. The only salvage value from this old building was some materials which were sold for proceeds of $3500.Cheyennehad paid surveying costs of $1500and legal fees related to land transfer of $6400. The new building was quickly constructed at a total cost of $422700. Permits on the construction of this new facility totalled $17800. Insurance premiums of $8700are paid annually. The production manager is currently on-site facilitating the production startup. This manager is an annual salary of $85100. What capital cost is assigned to the new building?

$440500

$449200

$450700

$534300

6.Under IFRS, a liability is recorded if the chance of occurrence is

likely.

probable.

unlikely.

undeterminable.

7.Sales taxes collected by a retailer are expenses

of the retailer.

of the customers.

of the government.

that are not recognized by the retailer until they are submitted to the government.

8.The entry to record the proceeds upon issuing an interest-bearing note is:

Interest Expense

Cash

Notes Payable

Cash

Notes Payable

Notes Payable

Cash

Cash

Notes Payable

Interest Payable

9.Bramblehad a customer loyalty program at its gas dock. For every litre of gasoline purchased, the customer would get a redemption award of $0.020, which can be used to purchase products in the company's retail marine store. In July, the company sold90000litres of gasoline. The entry to record the liability for the July sales would be a $___ credit to ___.

$1800; Redemption Reward Liability

$1800; Sales Discounts

$1800; Cash

$3600; Cash

10.When an interest-bearing note matures, the balance in the Notes Payable account is

less than the total amount repaid by the borrower.

the difference between the maturity value of the note and the face value of the note.

equal to the total amount repaid by the borrower.

greater than the total amount repaid by the borrower.