1)Use the adjusted trial balance for Stockton Company below to answer the questions that follow.

Stockton Company
Adjusted Trial Balance
December 31
Cash	7,530
Accounts Receivable	2,100
Prepaid Expenses	700
Equipment	13,700
Accumulated Depreciation		1,100
Accounts Payable		1,900
Notes Payable		4,300
Common Stock		1,000
Retained Earnings		12,940
Dividends	790
Fees Earned		9,250
Wages Expense	2,500
Rent Expense	1,960
Utilities Expense	775
Depreciation Expense	250
Miscellaneous Expense	185
Totals	30,490	30,490

Determine the net income (loss) for the period.

	a.	net loss $790
	b.	net loss $5,670
	c.	net income $9,250
	d.	net income $3,580

2)

A machine with a cost of $360,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 14,000 hours. It is to be depreciated by the units-of-output method. What is the amount of depreciation for the second full year, during which the machine was used 1,200 hours in the first year and 2,250 hours in the second year?

	a.	$56,250
	b.	$86,400
	c.	$70,000
	d.	$57,000