$36.$

Sanford and Son sells athletic equipment. The following events, related to a special customer order, occur as described below:

September $1,2019$: Sanford receives the special order for $300$ football helmets at a selling price of $$100$ each, including delivery at a future convenient time and location. The customer, with whom Sanford has had a long$-$term, trouble$-$free relationship, pays $$5,000$ as a deposit, and agrees to pay the rest on delivery. Sanford immediately orders $$20,000$ worth of helmets from its supplier and pays a $$5,000$ deposit for them.

September $20,2019$: Sanford pays a $$15,000$ balance due to the supplier upon delivery of the helmets to its warehouse.

October $1,2019$: The customer calls for delivery of the helmets and pays the balance of $$25,000$ when they arrive at the customer site.

$37.$

Quinlan Electric purchases machinery for $$220,000$ that is to be depreciated at straight$-$line depreciation for $5$ years. The estimated residual value of the machine after $5$ years is estimated at $$20,000.$ What is the book value of the asset after $2$ years?

$$80,000$

$$120,000$

$$140,000$