41.

Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale price for the equipment was $2,000. The entry to record the sale will include a

		a. debit to Equipment for $8,000
		b. credit to Accumulated Depreciation, Equipment, for $6,700
		c. credit to Cash for $2,000
		d. credit to Gain on Sale of Equipment for $700

42.

Kinder Co. purchased a car for $25,000, with an estimated useful life of 5 years and a residual value of $10,000. Kinder uses the straight-line depreciation method. After two years of use, the life of the car was increased by one (1) year, but the residual value remained unchanged. The depreciation on the car in year three should be:

		a. $3,000
		b. $2,250
		c. $4,500
		d. $2,500

43.

Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale price for the equipment was $1,000. The entry to record the sale will include a

		a. credit Gain on Sale of Equipment for $1,000
		b. debit Loss on Sale of Equipment for $300
		c. credit Cash for $1,000
		d. credit to Accumulated Depreciation, Equipment for $6,700

44.

A company had 100,000 shares outstanding on 1/1. 10,000 new shares were issued on 4/1, and 5,000 shares of treasury stock were purchased by the company from the stockholders on 7/1. What is the weighted average number of shares to be used for the year-end earnings per share calculation?

		a. 110,000
		b. 102,500
		c. 107,500
		d. 105,000