6. Some liabilities must be estimated so that they can be recorded in the same period as the related revenues. Which of the following is most relevant to this accounting practice? a concept of historical cost b. going-concern assumption c. limitation of materiality d. matching principle 7. At the beginning of Year 1, a company purchased a patent for S100,000 that has an expected useful life of 5 years. The putent has a legal life of 20 years. How much amortization expense should the company record in Year 1? a. So b. $5,000 c. $20,000 d. S100,000 8. Fabian Woodworks purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of five years, or 100,000 hours of operation. The truck was purchased on January 1, Year I, and was used for 27,000 hours in Year 1 and 26,000 hours in Year 2 If the company uses the units-of-production method, what is the depreciation rate per hour for the equipment? a. S0.10 b. S0.12 c. $1.00 d. S1.10 9. Flott Corp, purchased a machine on January 1, Year 1, for $60,000. The company decided to depreciate the machine over an eight-year period using the straight-line method. The company estimated its residual value at $4,000. What is the net book value of the machinery on June 30, Year 3? a. 839,000 b. $42.500 c. $46,000 d. $53,200 10. On January 2, Alfredo Corporation sold merchandise with a gross price of $100,000 to a customer with terms of 2:10, n/30. How much in sales discounts will be recorded if payment is received from the customer on January 8? a. SO b. $2,000 c. $98,000 d. $100,000 II. A company's weekly payroll is $80,000 for a five-day work week beginning each Monday and ending each Friday, The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31, the last day of the company's fiscal period? a. Increase wages expense by S48,000. b. Decrease wages payable by S48,000. c. Decrease cash by S48.000. d. No adjustment is necessary. 12. On January 1, Year 1, Fantasy Cruise Lines purchased a ship for $1,000,000. It has a 10-year useful life and a residual value of $100,000. The company uses the double-declining-balance method. What is the depreciation expense for the year ended December 31, Year 1? a. $90,000 b. $100,000 c. $180,000 d. $200,000