20. A piece of equipment costing $30,000 and on which $26,000 of accumulated depreciation has been recorded to date was sold for $10,000 in cash. What is the equipment's book value? A. $20,000 B. $10,000 C. $6,000 D. $4,000 21. A piece of equipment costing $30,000 and on which $26,000 of accumulated depreciation has been recorded was sold for $10,000 in cash. Which of the following is true? A. There is a gain of $4,000 B. There is a gain of $6,000 C. There is a loss of $6,000 D. There is a loss of $4,000 22. The city library purchases a computer system to replace the existing obsolete computer system. The purchase price for the new computer system was $112,000 including tax. The installation and training was $14,000. Freight totaled $850. Annual theft insurance was also purchased for an additional cost of $1,200. What amount will the city use to record their new computers? A. $112,000 B. $128,050 C. $126,850 D. $112,850 E. $126,000 23. On February 14, your company borrowed $50,000 from Tower Loan and signed a 90-day note. What is the due date of your note? (Note: It is not leap year) A. May 13 B. May 14 C. May 15 D. May 16 24. Assume management estimates that 8% of Accounts Receivable will prove uncollectible, what is the necessary adjusting entry if Allowance for Doubtful Accounts has a debit balance of $2,200 and Accounts Receivable has a balance of $175,000. A. $14,000 B. $16,200 C. $11,800 D. $0 25. Accounts Receivable is reported on the Balance Sheet at $362,000. The Allowance for Doubtful Accounts has a balance of $29,000. What is the Net Realizable Value? A. $0 B. $333,000 C. $391,000 D. $362,000