6. On October 1, 2020, El Centro Company purchased the copyright to Smith Finance tutorials for $400,000. It is estimated that the copyright will have a useful life of 5 years with no salvage value.. The amount of Amortization Expense recognized for the year 2020 would be

a. $20,000.

b. $30,000.

c. $40,000.

d. $80,000.

7. A company has the following assets:

Buildings and Equipment, less accumulated depreciation of $1,500,000 $10,000,000

Office Equipment, less accumulated depreciation of $25,000 750,000

Trademarks 1,000,000

Patents 2,000,000

Timberlands, Less accumulated depletion of $800,000 2,500,000

The total amount reported under Property, Plant, and Equipment would be

a. $10,750,000.

b. $13,250,000.

c. $14,500,000.

d. $16,250,000.

8. Gold Federal Bank agrees to lend Khan Accounting Firm $250,000 on January 1. Khan Accounting Firm signs a $250,000, 9%, 6-month note. What entry will Khan Accounting Firm make to pay off the note and interest at maturity assuming that interest has been accrued to June 30?

a. Notes Payable ............ 261,250

Cash ............ 261,250

b. Interest Expense ........... 11,250

Notes Payable ........... 250,000

Cash ............ 261,250

c. Notes Payable ............. 250,000

Interest Payable .............. 11,250

Cash ............. 261,250

d. Interest Payable .............. 10,000

Notes Payable .............. 250,000

Interest Expense ............... 1,250

Cash ............. 261,250

9. On September 1, Bannons Carpet Service borrows $120,000 from Third Chicago Bank on a 6-month, $120,000, 8% note. What entry must Bannon Carpet Service make on December 31 before financial statements are prepared?

a. Interest Payable ............ 9,600

Interest Expense ............ 9,600

b. Interest Expense ............ 9,600

Interest Payable ............. 9,600

c. Interest Expense ............ 3,200

Notes Payable ............. 3,200

d. Interest Expense ............ 3,200

Interest Payable ............. 3,200

10. A company receives $340, of which $32 is for sales tax. The journal entry to record the sale would include a

a. debit to Sales Tax Expense for $340.

b. debit to Sales Revenue for $340.

c. credit to Sales Taxes Payable for $32.

d. debit to Sales Revenue for $32.