6. ____ Ward Inc. owns Equipment with cost of $30,000 and accumulated depreciation of $19,000. The Equipment is sold for $14,000 cash. Which of the following is true? a. Gain on Disposal will be debited for $3,000 b. Loss on Disposal will be credited for $1,000 c. Loss on Disposal will be debited for $1,000 d. Gain on Disposal will be credited for $3,000.

7. ____ Lemming acquired a building for $60,000 that is estimated to last for 20 years. Lemming depreciates the building on a straight line basis, with no salvage value. The book value of the building after 5 years will be: a. $60,000 b. $55,000 c. $45,000 d. the same as the market value of the building

8. ____ Who pays unemployment taxes? A. employee only b. employer and employee c. employer only d. neither employer nor employee

9. ____ A newly appointed payroll manager should obtain a copy of: a. Learning Payroll by Trial and Error b. Fifty Shades of Accounting c. IRS Publication 15 Circular E d. Payrollan Exciting Career Choice for the 1980s

10. ____ Nell uses double declining balance depreciation. How much depreciation should Nell record in year one on Equipment with a cost of $9,000, salvage value of $1,000 and life of 5 years? A. $1600 b. $3200 c. $1800 d. $3600