9) Kansas Enterprises purchased equipment for $74,500 on January 1,2024. The equipment is expected to have a five-year service life, with a residual value of $6,900 at the end of five years. Using the straight-line method, depreciation expense for 2025 and the book value at. December 31, 2025, would be: A) $13,520 and $47,460, respectively. B) $14,900 and $37,800, respectively. C) $13,520 and $40,560, respectively. D) $14,900 and $44,700, respectively. 10) Kansas Enterprises purchased equipment for $74,000 on January 1,2024 . The equipment is expected to have a five-year service life, with a residual value of $8,850 at the end of five years. Using the double-declining balance method, depreciation expense for 2025 would be: (Do not round your intermediate calculations) A) $26,060. B) $29,600. C) $17,760. D) $15,636. 5) A company incurred the following costs associated with the purchase of a piece of land that in will use to re-build an office builling. What is the total capitalized cost of the land? A) $695,700 6) 567,700 C) $692,800 D) $670,800 6) The balance sheet of Hidden Valley Farms reports total assets of $855,000 and $920,000 at the beginning and end of the year, repectively. The return on assets for the year ia 15%. What is Ifidden Valley's net income for the year? A) $138,000 A) 55,016,667 C. 56,133,333 D) $133,125 7) Which of the following is not a characteristic of a liability? A) It results from past transactions or events. e) Ir represents a probable, future sacrifice of economic benefits. C) It must be payable in cash. D) It arises from present obligations to other entities. 8) Which of the following is a contingency that should be recorded? A) The company deducts life inurance premiums from employees' paychecks. b) It is probuble that the company will receive $100,000 in settiement of a lawsuit. C) The company is being sued and a loss is reasonably possible and reasonably cstimable. D) The company offers a two-ycar warmanty and the expenses can be reasonably cstimated 2) Vikinge, linearponated seperes the following amounts: If Toretto Holkings acguines Vikings, Inoorporated, for $603,000, how much goodwill would be reporited by Toretto? A) 50 B) $232,300 C) $60,000 D) $292,300 3) Working capitat is: A) Cash, short-tern investments, and accounts receivable minus current liabilities. (3) Current assets minus current liabilities. C). Current assets divided by current liabilities. D) Cash, short-1erm investments, and accounts receivable divided by current liabilities. 4) Liabilities are classified as current or tong-term bated on their A) Payment Terms 6) Due Date C) Description D) Amount
