9. A factory mac hine was purchased for $90,000 on January 1,2011. It was estimated that it would have a It was also estimated that the machine would . If the be run 40,000 hours in the 5 years. The company ran the machine for 4,000 actual hours in 201 company uses the units-of-activity method of depreciation, the amount of depreciation expense would be A) $7,200 B) $14,400 C) $18,000 D) $9,000 for 2 011 50. If the month-end bank statement shows a balance of $36,000, outstanding checks are $12,000, a deposit of $4,000 was in transit at month end, and a check for $500 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is A) $27,500. B) $20,500 C) $28,500. D) $43,500. 51. The book value of a plant asset is always equal to its fair market value. A) True B) False 52. If the unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. A) True B) False 53. Depreciation is a process of A) cost accumulation B) cost allocation. C) asset valuation. D) asset devaluation