6.On January 1, 2009, Rra's Sporting Goods purchased store fixtures at a cost of $180,000. The anticipated service life was 10 years with no residual value. Rra's has been using the double-declining balance method, but in 2011 adopted the straight-line method because the company believes it provides a better measure of income. Rra's has a December 31 year-end. The journal entry to record depreciation for 2011 is

A.

Depreciation expense

28,800

Retained earnings

28,800

B.

Depreciation expense

23,040

Accumulated depreciation

23,040

C.

Depreciation expense

14,400

Accumulated depreciation

14,400

D.

Accumulated depreciation

28,800

Retained earnings

28,800

3.Hollywood Ltd. purchased equipment on 1/1/09 for $800,000, estimating a five-year useful life and no residual value. In 2009 and 2010, Hollywood depreciated the asset using the straight-line method. In 2011, Hollywood changed to sum-of-years'-digits depreciation for this equipment. What depreciation would Hollywood record for the year 2011 on this equipment?

A.$240,000

B.$120,000

C.$160,000

D.$200,000

4.On January 1, 2018, Mites, Inc., acquired land for $6.2 million. Mites paid $1.2 in cash and signed a 6% note requiring the company to pay the remaining $5 million plus interest on December 31, 2019. An interest rate of 6% properly reflects the time value of money for this type of loan agreement. For what amount should Mites record the purchase of land?

A.$6.8 million

B.$6.2 million

C.$5.6 million

D.$5.0 million