A Celty Airline jet costs $$28,000,000$ and is expected to fly $200,000,000$ miles during its $10-$year life. Residual value is expected to be zero because the plane was used when acquired. If the plane travels $1,000,000$ miles the first year, how much depreciation should Celty Airline record under the units$-$of$-$production method?

a$.$ $$2,800,000$

b$.$ $$140,000$

c$.$ $$560,000$

d$.$ Cannot be determined from the data given

A copy machine costs $$45,000$ and has accumulated depreciation of $$44,000.$ Suppose Print and Photo Centeer discards this machine and receives nothing. What is the result of the disposal transaction?

a$.$ No gain or loss

b$.$ Gain of $$1,000$

c$.$ Loss of $$1,000$

d$.$ Loss of $$45,000$

In an inflationary environment and assuming purchases are made throughout the period, the inventory flow assumption which produces the highest net income is

a$.$ LIFO

b$.$ FIFO

c$.$ Weighted$-$average

d$.$ Specific identification

Palmon, Inc. has a total receivable balance of $$220,00$ which breaks down:

$0-30$ days $$80,000$

$31-60$ days $$55,000$

$61-90$ days $$40,000$

Over $90$ days $$25,000$

If historical default experience is $5\%$ for $30$ days or less, $10\%$ for $31-60$ for $61-90$ days and $50\%$ for over $90$ days, how much should net realizab shown on the balance sheet?

a$.$ $$30,000$

b$.$ $$190,000$

c$.$ $$220,000$

d$.$ Insufficient information provided