1.On October 1, 2022,Cullumber Companyplaces a new asset into service. The cost of the asset is $112000with an estimated5-year life and $25000salvage value at the end of its useful life. What is the depreciation expense for 2022 ifCullumber Companyuses the straight-line method of depreciation?

A.$4350.

B.$22400.

C.$5600.

D.$11200.

2. A plant asset was purchased on January 1 for $66000with an estimated salvage value of $15000at the end of its useful life. The current year's depreciation expense is $3400calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $23800. The remaining useful life of the plant asset is

A.19years.

B.15years.

C.7years.

D.8years.

3. A machine that was purchased on January 1 for $74000has an estimated salvage value of $8000. If the machine's depreciation rate is20%, its annual depreciation is

A.$14800.

B.$59200.

C.$13200.

D.$16400.

4. Carla Vista Co.bought equipment for $290000on January 1, 2021.Carla Vistaestimated the useful life to be10years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2022,Carla Vistadecides that the business will use the equipment for a total of11years. What is the revised depreciation expense for 2022?

A.$26100.

B.$13050.

C.$23727.

D.$29000.

5. A company sells a plant asset that originally cost $400000for $170000on December 31, 2022. The accumulated depreciation account had a balance of $160000after the current year's depreciation of $40000had been recorded. The company should recognize a

A.$230000loss on disposal.

B.$70000gain on disposal.

C.$70000loss on disposal.

D.$30000loss on disposal.

6. Oriole Companyincurred $930000of research and development costs in its laboratory to develop a new product. It spent $174000in legal fees for a patent granted on January 2, 2022. On July 31, 2022,Oriolepaid $82000for legal fees in a successful defense of the patent. What is the total amount that should be debited to Patents through July 31, 2022?

A.$930000.

B.$256000.

C.$1186000.

D.$0.

7. On May 1, 2022,Carla Vista Co.purchased the copyright toMartinez Corp.for $132000. It is estimated that the copyright will have a useful life of5years. The amount of amortization expense recognized for the year 2022 would be

A.$26400.

B.$17600.

C.$13200.

D.$14080.

8. A company purchased land for $430000cash. The real estate brokers' commission was $29000and $59000was spent for demolishing an old building on the land before construction of a new building could start. Under the historical cost principle, the cost of land is

A.$489000.

B.$430000.

C.$459000.

D.$518000.

9. CullumberClinic purchases land for $450000cash. The clinic assumes $4200in property taxes due on the land. The title and attorney fees totaled $2400. The clinic had the land graded for $7400. What amount doesCullumberClinic record as the cost for the land?

A.$457400.

B.$450000.

C.$464000.

D.$456600.

10. Cullumber Companypurchased machinery on January 1 at a list price of $410000, with credit terms4/10, n/30. Payment was made within the discount period.Cullumberpaid $86500sales tax on the machinery and paid installation charges of $5700. Prior to installation,Cullumberpaid $10800to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery?

A.$485800.

B.$496600.

C.$513000

D.$480100.

11. Blossom Companyissued bonds that had the following data associated with them:

Interest to be paid is $42000.

Interest expense to be recorded is $47000.

Which of the following characteristics is true?

A.The bonds are sold at a premium.

B.When recording the interest expense, the amortization will decrease the bond carrying value.

C.The difference between the interest expense and the interest to be paid is the bond's par value.

D.When recording the interest expense, the amortization will increase the bond carrying value.

12. On January 1, 2020,Wildhorse Co., a calendar-year company, issued $2360000of notes payable, of which $590000is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

A.Current liabilities, $2360000.

B.Long-term debt, $2360000.

C.Current liabilities, $590000; Long-term Debt, $1180000.

D.Current liabilities, $590000; Long-term Debt, $1770000.

13. Kingbird, Inc.does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $29044. If the sales tax rate is6%, what amount must be remitted to the state for February's sales taxes?

A.$1743

B.$1644

C.$1636

D.It cannot be determined.

14. Bonds with a face value of $360000and a quoted price of104.25have a selling price of

A.$375300.

B.$374490.

C.$361530.

D.$374400.

15. Bonds with a face value of $936000and a quoted price of98.5have a selling price of

A.$919620.

B.$917748.

C.$917327.

D.$921960.

16. A corporation issues $372000,10%,5-year bonds on January 1, 2020, for $356400. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2020's adjusting entry is

A.$40320.

B.$37200.

C.$34080.

D.$3120.

17. Sunland Companyreceived proceeds of $533000on10-year,8% bonds issued on January 1, 2019. The bonds had a face value of $500000, pay interest annually on December 31, and have a call price of102.Sunlanduses the straight-line method of amortization. What is the carrying value of the bonds on December 31, 2021?

A.$500000

B.$526400

C.$473600

D.$529700

18. On January 1,Marin Inc.issued $5500000,9% bonds for $5165000. The market rate of interest for these bonds is10%. Interest is payable annually on December 31.Vaughnuses the effective-interest method of amortizing bond discount. At the end of the first year,Marinshould report unamortized bond discount of

A.$301500.

B.$313500.

C.$283350.

D.$280000.

19. Crane Companyissued $3800000of6%,10-year bonds on one of its interest dates for $3282000to yield an effective annual rate of8%. The effective-interest method of amortization is to be used. How much bond interest expense (to the nearest dollar) should be reported on the income statement for the end of the first year?

A.$263250

B.$262560

C.$261868

D.$228000

20. A retail store credited the Sales Revenue account for the sales price and the amount of sales tax on sales. If the sales tax rate is5% and the balance in the Sales Revenue account amounted to $441000, what is the amount of the sales taxes owed to the taxing agency?

A.$420000

B.$441000

C.$22050

D.$21000