A company has 50,000 shares of common stock outstanding. The stockholders' equity applicable to common shares is $520,000, and the par value per common share is $10. The book value per share is:

$0.10

$1.04

$10.40

$11.75

Superior Paint Company installs a manufacturing machine in its factory at the beginning of the year at a cost of $87,000. The machine's useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500units of product. What journal entry would be needed to record the machines' second year depreciation under the units-of-production method?

Debit Depletion Expense $16,900; credit Accumulated Depletion $16,900.

Debit Depletion Expense $16,000; credit Accumulated Depletion $16,000.

Debit depreciation expense $16,900; credit accumulated Depreciation $16,900.

Debit Depreciation expense $16,000; credit Accumulated Depreciation $16,000

Debit Amortization Expense $16,900; credit Accumulated Amortization $16,900.

A company must repay the bank a single payment of $10,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value factor for 3 years at 8% is 0.7938. The present value of the loan is:

$10,000

$12,400

$7,938

$9,200

$7,600