9000 0 5000 400 123. If a fully depreciated asset with no residual value is retired without receiving any cash on reiecment A. a gain on disposal will be recorded. B. depreciation must be recorded as though the asset were sill on the books C. a loss on disposal will be recorded. D. no gain or loss on disposal will be recorded. 124. On January 1,2009, Horton Inc. sells a machine on January 1,2007 for $40,000. The machine was estimated value of $0. Horton uses straight-line depreciation. In recording this tramaction A. a loss of $1,000 would be recorded B. a gain of $1,000 would be recorded C. a loss of $17,000 would be recorded Machine was viality to have a useful life of 5 years and D. a gain of $23,000 would be recorded 125. Which of the following statements is true? A. Depreciation allocates the cost of tangible assets over their useful lives B. Depreciation allocates the cost of intangible assets over their useful lives C. Amortization allocates the cost of tangible assets over their useful lives. D. The term "depreciation" relates to all long-lived assets whereas "amortization relates cnly inange assets. should: A. debit amortization expense for $62,000 and credit accumulated amortization for $62,000 B, debit intangible assets and credit accumulated amortization for an amount equal to 20% ofbokde C. debit amortization expense for $31,000 and credit intangible assets for $31000 126. Your company pays $620,000 for a patent that has 10 years remaining Each yer your cop expense rtization expense because patents are not subject to amortization. D. report no