1)Cane Inc purchased a machine costing $80,000 on January 2nd of year 1. The machine is expected to last 9 years with a salvage value of $8,000. Cane sold the machine for $65,000 on July 1st of year 3. What was the gain or loss recognized on the sale? $7,222 loss $5,000 loss $7,222 gain $5,000 gain

2.)Rider Inc purchased a machine costing $70,000 on January 3rd. The machine is expected to last 10 years and 10,000 hours with a salvage value of $4,000. During the first year the machine was used 1,800 hours. What is annual depreciation if Rider uses the units of production method? $11,880 $6,600 $7,000 $13,500

3.)

Which of the following is an example of a revenue expenditure?

		oil change for vehicle
		installing a new lift on delivery truck
		purchasing a piece of equipment
		purchasing supplies