7) Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the collection of the note and interest at maturity should be: (Use 360 days a year.) A) Debit Cash $25.437.50; credit Interest Revenue $437.50; credit Notes Receivable $25,000. B) Debit Notes Payable $25,000; Debit Interest Expense $1,750; credit Cash $26,750. C) Debit Cash for $25,000; credit Notes Receivable $25,000 D) Debit Cash $25.437.50; credit Notes Receivable for $25.437.50 E) Debit Cash $26,750; credit Interest Revenue $1,750, credit Notes Receivable $25,000. 8) One characteristic of plant assets is that they are: A) Liabilities to a company B) Current assets C) Natural resources D) Intangible. E) Used in operations. 9) The relevant factors in computing depreciation do not include: A) Depreciation method. B) Market value. C) Salvage value. D) Cost. E) Useful life. 10) Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of: A)$10,000 B)$9,250 C)$20,000 D) $5,500 E) $5,000 A) Book value B) Historical cost. C) Current (market) value. D) Replacement cost E) Present value