26) The book value of equipment: A) Decreases with the passage of time. B) May increase or decrease depending upon the economy C) Remains the same with the passage of tume. D) Increases with the passage of time. 27) The gain on the disposal of equipment is recognized when: A) The book value of the equipment is less than the value received. B) The book value of the equipment is greater than the value received C) A salvage value exists. D) A gain should not be recognized on the disposal of an asset 28) Clark Imports sold a depreciable plant asset for cash of $35,000. The accumulated depreciation amounted to $70,000, and a loss of $5,000 was recognized on the sale. Under these circumstances the original cost of the asset must have been: A) S100,000. B) S110,000. C) $65,000. D) $75,000. 29) The entry to record amortization on a copyright would include A) A credit to amortization expense. C) A debit to amortization expense B) A debit to copyright D) A debit to accumulated amortization. in distinctive typeface is an example of B)A trademark 30) Coca-Cola's famous name A) A patent. C) A copyright D) Goodwill 31) A general partnership has a limited life and each partner has unlimited personal liability A) True B) False 32) Double Taxation means A) A corporation pays taxes to the federal government and to the state B) A corporation must pay double the amount of tax that an unincorporated business pays C) The corporation pays tax on its income and the stockholders pay tax D) The corporation pays tax on its income and the officers of the corporation pay tax on their government on their dividends salaries 33) Assets contributed to a partnership by a partner would be recorded at A) Fair market value. C) Cost less depreciation B) Historical cost. D) Potential value. 34) Net income in a partnership may not be distributed to the partners A) As interest on beginning capital C) In the form of dividends B) In a fixed ratio. D) As a salary allowance A-5