32. We have a Note Receivable for $600,000 which carries a 6 percent interest rate and will last for six months. Which of the following is true when accounting for the note:

Total interest on the note will be $36,000.

When the note matures, we will receive $600,000.

Interest Revenue of $18,000 will be recognized if we do annual financial statements.

Interest Expense of $18,000 will be recognized if we do annual financial statements.

33. We purchase Land for $120,000. In connection with the purchase we pay legal fees of $1,000, commissions of $20,000, clearing expense to prep the land for use of $40,000 and interest on a loan we made to purchase the land in the amount of $1,000. At what amount should we record the land on our books?

$120,000

$182,000

$181,000

$141,100

We purchased the following equipment item on July 1, 2011:

Equipment Account	$400,000
Life in Years	4
Life in Units	1,000,000
Salvage Value	$40,000
Units used in 2011	80,000

Use this information to answer the following question 34 37

34. Using straight-line depreciation, for the year 2011, we should record depreciation expense of:

$90,000

$40,000

$50,000

$45,000

35. Using the units-of-activity depreciation method, for the year 2011, we should record depreciation expense of:

$32,000

$28,800

$16,000

$14,040

36. Using Double Declining Balance to depreciate the asset, we should record depreciation expense in 2012 of:

$200,000

$150,000

$100,000

$50,000

37. Assume we purchased the equipment on January 1, 2011. After two years using straight-line depreciation we determined that the useful life should have been six years. What should depreciation expense in 2013 (third year) be:

$22,500

$55,000

$45,000

$25,000

38. We purchase a timber tract for $2,000,000 on July 1, 2011. It is expected that the tract will produce 1,000,000 million board feet. The timber tract should last 5 years and has no salvage value. What will depletion expense be in 2011 if we cut 200,000 board feet and we sell 180,000 board feet.

$40,000

$360,000

$400,000

$160,000

39. We sell an asset that we purchased for $120,000 and a book value of $80,000 for $84,000 cash. To record this sale we would:

Record a gain on sale of $4,000.

Record a loss on sale of $4,000.

Record a gain on sale of $8,000.

Record neither a gain nor loss.