7. Tyler Company purchased machinery on January 1 at a cost of s200,000. Tyler paid $10,000 sales tax machinery, and paid installation charges of $3,520. Prior to installation, Tyler paid $8,000 to pour a concrete slab on which to place the machinery. a. $209,520 b. $217,520 c. $221,520 d. $202,000 What is the total cost of the new machinery? 8. Failure to record depreciation expense causes which of the following to occur a. Current assets are not affected and liabilities are understated. b. Current assets are overstated and retained earnings is overstated c. Current assets are not affected and retained earnings is overstated d. Current assets are overstated and retained earnings is understated. A company sells a plant asset that originally cost $150,000 for $50,000 cash on December 31, 2009. The accumulated depreciation account had a balance of $60,000 on December 31, 2009. The company should recognize a a. $100,000 loss on disposal b. $40,000 gain on disposal. c. $40,000 loss on disposal. d. $25,000 loss on disposal. 9. 10. On April 1, 2010, Wagner Company purchased a truck for $75,000. It is estimated that the truck will have a useful life of 7 years, and a $5,000 salvage valuc. The amount of straight line Depreciation Expense recognized for the year 2010 would be a. $15,000. b. $10,000. c. $7,500. d. $6,667 11. The following totals for the month of April were taken from the payroll register of Main Company: Salaries FICA taxes withheld Income taxes withheld Medical insurance deductions Federal Unemployment Taxes State Unemployment Taxes $24,000 1,100 5,000 900 64 432 The entry to record accrual of employer's payroll taxes would include a a. debit to Payroll Tax Expense for $496. b. debit to Payroll Tax Expense for $1,596. c. credit to FICA Taxes Payable for $2,200. d. credit to Payroll Tax Expense for $496. Which of the following accounts is not usually a current liability a. bonds payable. b. unearned revenue. c. interest payable. d. FICA taxes payable. 12. 13. Which of the following show the proper effect of a stock split and a stock dividend