6. Which of the following expenditures incurred in connection with acquiring machinery is a proper "charge to the asset account? a. Freight b. Installation cots c. Bath A and B d. Neither A nor B 7. What is the amount of depreciation, using the double-declining balance method for the second year of use for equipment costing $9,000, with an estimated residual value-of$600 and an estimated life of 3 years? a. 6,000 b. 3,000 c. 2,000 d. 400 8. The fact that each partner can legally bind the partnership in business transactions is called: a. Dissolution b. Mutual agency c. Co-ownership d. Unlimited liability 9. Ashes and Jimmy formed a partnership to practise accounting. Ashes invested his personal library in the firm. The accounting books cost Ashes $21,000 and were estimated to have a market value of $18,000. The publisher is ?still owed $5,000; The partnership will. assume this obligation. In addition, Ashes contributed other books that were even to him. by a retiring accountant. The estimated current worth of these books is $6,000. By what amount should Ashes' capital be increased? a. $13,000 b. $19,000 c. $22,000 d. $24,000 10. Which of the following is not one of the characteristics of the corporate form of business organization? a. Income is taxed only when distributed to stockholders as dividends b. Ownership in the entity is easily transferable. c. Liability is limited to resources of the corporate entity d. It is not necessary to reorganize the business when ownership changes.