8. Davis Co. sold equipment for $50,000 that originally cost $70,000. If this sale appropriately resulted in a gain on sale of $30,000, what was the accumulated depreciation on the sale date?

1. $10,000.
2. $30,000.
3. $50,000.
4. None of the above.

9. Lindley Corp. leased office space from Leaseco Inc. for a seven year period beginning January 1, 20X2. Lindley Corp. invested $84,000 in improvements to the leased property. These improvements have an estimated useful service life of 10 years. As of January 1, 20X5, what was the book or carrying value of the leasehold improvements on Lindley Corp.s books?

1. $84,000 since no amortization is required.
2. $58,800.
3. $48,000.
4. $0 since the improvement costs should have been expensed immediately when they were incurre