22) 22) An asset was purchased for $400,000. It had an estimated salvage value of $80,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $64.000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in Year 6 would be A) $24,000 B) 535,200. C) $33,600 D) $48,000 23) - - 23) Morgan Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $38,160. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes? A) $2,152 B) $2,160 C) $2.290 D) It cannot be determined. 24) 24) When an account is written off using the allowance method, the A) net accounts receivable will stay the same. B) allowance account will increase C) net accounts receivable will decrease. D) cash realizable value of total accounts receivable will increase 25) Equipment with a cost of $640,000 has an estimated salvage value of $40,000 and an estimated life 25) of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used for 3,300 A) $180,800. B) $150,000 C) $132,000 D) $160,000 hours? 26) 26) If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount A) greater than face value B) less than face value. C) equal to face value D) that cannot be determined