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8) Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value

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8) Kansas Enterprises purchased equipment for $60,000 on January 1, 2021. The equipment is expected to have a five-year service life, with a residual value of $5,000 at the end of five years. Using the double-declining balance method, depreciation expense for 2021 would be: A) $20,000 B) $22,000. C) $24,000. D) $19,000 9) Equipment with a cost of $390,000 and estimated residual value of $60,000 is expected to have a useful life of 30,000 hours. During August, the equipment was operated 700 hours. What amount should be recorded as depreciation expense for the month? A) $7,000 B) $9,100. C) $7,700. D) $8,400. 10) Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected useful life of five years with no residual value. Assume the company uses the straight-line method to record amortization. What is the amortization expense for the first year? A) $3,333. B) $2,000. C) $10,000. D) $0. 11) Bricktown Exchange purchases a copyright for $50,000. The copyright has a remaining legal life of 25 years, but only an expected useful life of five years with no residual value. Assume the company uses the straight-line method to record amortization. What is the carrying value of the copyright at the end of the second year? A) $50,000. B) $10,000. C) $40,000. D) $30,000. 12) Equipment was sold for $40,000. The equipment was originally purchased for $75,000. At the time of the sale, the equipment had accumulated depreciation of $50,000. Calculate the gain or loss to be recorded on the sale of equipment A) Loss of $35,000. B) Gain of $10,000. C) Loss of $15,000. D) Gain of $15.000. 13) In December 2020, Quebecor Printing received magazine subscriptions for 2021 from customers, who paid $500 in cash. What would be the appropriate journal entry for this event in December 2020? A) Debit Cash, $500; credit Deferred Revenue, $500. B) Debit Cash, $500; credit Subscription Revenue, $500. C) Debit Subscription Revenue, $500; credit Cash, $500. D) No journal entry is necessary. 14) In January 2021, Summit Department Store sells a gift card for $50 and receives cash. In February. 2021, the customer comes back and spends $20 of the gift card to purchase a water bottle. What would be the appropriate journal entry for the sale of the gift card in January? A) Debit Cash, $50; credit Deferred Revenue, $50. B) Debit Cash, $50; credit Sales Revenue, $50. C) Debit Sales Revenue, $20; credit Cash, $20. D) No journal entry is necessary

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