1.Reggie purchases land for $40,000 and additionally, pays his lawyer $5,000 to advise him in the purchase. The $5,000 would be debited to:

1. Legal Expense
2. Miscellaneous Expense
3. Land
4. None of these

2.Ward Inc. owns Equipment with cost of $30,000 and accumulated depreciation of $19,000. The Equipment is sold for $14,000 cash. Which of the following is true?

a. Gain on Disposal will be debited for $3,000

b. Loss on Disposal will be credited for $1,000

c. Loss on Disposal will be debited for $1,000

d. Gain on Disposal will be credited for $3,000.

3.Who pays unemployment taxes?

A. employee only

b. employer and employee

c. employer only

d. neither employer nor employee

4.Johnson purchases a piece of equipment with an estimated useful life of 4 years. The DDB rate for this asset would be:

a) 8%

b) .125

c) .25

d) .50

5.On which financial statement would a gain or loss be reported?

A. Balance Sheet

b. Income Statement

c. Owners Equity Statement

d. None of these