7. Company acquired equipment for $120 (including value added tax- $20) on January 1. Installation costed $20. Useful life of the equipment is 5 years. Two years later Company sold equipment for $64. The company earned profit from sale of equipment TRUE 8. Company is a fitness club. Clients are offered annual membership with unlimited visiting time for $2000 per year or one-off visit for $50. Client A acquired annual membership on June 30, 2021, and visited the club only one time per month during July-December 2021. Client B visited the club 10 times during January-December 2021 and paid for one-off visit. Revenue from Client A exceeds revenue from Client B for 2021 calendar year. TRUE FALSE 9. Company produced some inventories at cost of $3000. The inventories were damaged by flood, and these inventories are still on Company's balance on December 31 2021. The Company has two options: . FALSE TRUE Option 2. Sell the inventories without fixing for 2800. This option does not assume any selling costs. Carrying value of the inventories on December 31, 2021 is $2900. Option 1. Fix the inventories for $1600 and sell it at their normal price of $5000. Agent commission will be 10% from selling price FALSE