8- Which of the following is usually expressed in the form of a percentage?

a.time of the note

b.discount of the note

c.rate of interest

d.principal of the note

9- A $7,300, 11.9% note is dated April 21 and is due in 60 days. The amount of interest on the due date of the note would be

a.$73.00.

b.$119.00.

c.$144.78.

d.$60.00.

10- The face amount of a note that is promised to be paid at maturity is called the

a.rate of interest.

b.discount of the note.

c.time of the note.

d.principal of the note.

11- When a business endorses a note and transfers it to a bank, the process is called

a.cosigning a note receivable.

b.collecting a note receivable.

c.dishonoring a note receivable.

d.discounting a note receivable.

15- A company purchased a van at a cost of $42,000 and expects it can be sold for $6,000 after 120,000 miles of service. Assuming the units-of-production method is used and the van is driven for 24,000 miles during the first year, the depreciation at the end of the first year would be

a.$4,200.

b.$12,000.

c.$1,200.

d.$7,200.

16- Use the following data:

Asset cost	$120,000
Expected life	4 years
Estimated salvage value	$12,000

Using the sum-of-the-years-digit method, the amount of depreciation for the third year would be

a.$28,000.

b.$21,600.

c.$48,600.

d.$30,000.

17- Salvage value is not considered directly in the determination of the deprecation amount with the

a.units-of-production method.

b.straight-line method.

c.sum-of-the-years'-digit method.

d.declining-balance method.

18- Equipment that has no exchange or sales value, originally cost $875, and has depreciation totaling $700. The transaction to discard the equipment would result in a

a.loss of $800.

b.gain of $175.

c.loss of $875.

d.loss of $175.

19- Use the following data:

Asset cost	$80,000
Expected life	3 years
Estimated salvage value	$7,000

Using the declining-balance method, the amount of depreciation for the first year would be

a.$24,333.33.

b.$53,333.33.

c.$48,666.67.

d.$26,666.67.