5. An asset with an original acquisition cost of $5,000,000 must be depreciated using the year-digit method over 5 years. Find accumulated depreciation, and net book value, respectively, at the end of the second year a. Accumulated depreciation $ 3,000,000, Net book value $ 2,500000 b. Accumulated depreciation $ 2,500,000, Net book value $ 3,000,000 c. Accumulated depreciation $ 2,000,000 Net book value $ 3,000000 d. Accumulated depreciation $ 3,000,000, Net book value $ 2,000,000 s. ren years ofer acouiring t OED Ine sold tor s d miation of a buitding that had originally cost $ 8,000,000, and which had been depreciated using the straight-ine method without salvage value, with a horizon of 40 years. Two of the accounting entries to reflect this transaction are a. Dr. accumulated depreciation $2.000.000, Cr. Gain on Sale of Assets $ 500.000 b. Dr. accumulated depreciation $ 1,625,000, Cr. Gain on Sale of Assets 5 2,125,000 c. Dr. Spending Depreciation 3 6,000,000, Cr. Loss on Sale of Assets of $ 1,625,000 It cannot be determined with the information provided 7. The main objective of the Statement of Cash Flows is: a. To add complexity and totality to the other two existing financial statements, namely the Balance Sheet and the Income Statement b. To classify activities in operation, financing and investment categories C. To help prepare the company to project its future cash needs d. To explain the change in the balance of the cash account during the period Vademecum, Inc. had an initial balance in its Accounts Receivable account of $35,000, and a final balance in this account of $27,000. This change represents: 8. a. An operating use of funds in the amount of $8,000 b. An operating source of funds in the amount of $8,000. c. An investing source of funds in the amount of $8,000. d. It cannot be determined with the information provided Vademecum, Inc. had an initial balance in its Bonds Payable account of $42,500,000 and a final balance in this account of $62,500,000. This change represents: 9. a An investing use of funds in the amount of $20,000,000 b. An operating source of funds in the amount of $20,000,000 c A financing source of funds in the amount of $20,000,000. d. It cannot be determined with the information provided 2lPage