A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $61,500; the land at $45,400, and the parking lot at $18,100. Land should be recorded in the accounting records with an allocated cost of: Multiple Choice O $45,400. O $O. O $36,320. O $42,320. O $100,000.Marlow Company purchased a point of sale system on January 1 for $7,200. This system has a useful life of 10 years and a salvage value of $1,300. What would be the depreciation expense for the second year of its useful life using the double-declining- balance method? Multiple Choice O $1,440. O $1,088. O $1,152 O $1,180. O $590.Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $116,000. The asset is expected to have a salvage value of $15,400 at the end of its five- year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be: Multiple Choice O $25,056 O $21,816 O $32,724 O $62,640 O $104,400Peavey Enterprises purchased a depreciable asset for $24,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,500, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? Multiple Choice O $4,583 O $4,583 O $18,333 O $5,500 O $15,125A company purchased a weaving machine for $231,450. The machine has a useful life of 8 years and a residual value of $12,500. It is estimated that the machine could produce 755,000 bolts of woven fabric over its useful life. In the first year, 107,500 bolts were produced. In the second year, production increased to 111,500 units. Using the units-of- production method, what is the amount of depreciation expense that should be recorded for the second year? Multiple Choice O $31,175. O $32,335. O $63,510. O $32,955. O $34,181.Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $156,000. The machine's useful life is estimated to be 5 years, or 160,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 25,600 units of product. Determine the machines' second year depreciation under the straight-line method. Multiple Choice O $24,320. O $30,400. O $31,200. O $24,960. O $32,000.Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $114,000. The machine's useful life is estimated to be 5 years, or 210,000 units of product, with a $6,000 salvage value. During its second year, the machine produces 33,600 units of product. Determine the machines' second year depreciation under the units-of-production method. (Do not round intermediate calculations.) Multiple Choice O $17,280. O $21,600. O $22,800. O $18,240. O $24,000.An asset's book value is $18,300 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,300 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,300, the company should record: Multiple Choice O A gain on sale of $3,000. O A loss on sale of $3,000. O A gain on sale of $1,950. O Neither a gain nor a loss is recognized on this type of transaction. O A loss on sale of $1,950.A company purchased a tract of land for its natural resources at a cost of $1,830,800. It expects to mine 2,120,000 tons of ore from this land. The salvage value of the land is expected to be $262,000. The depletion expense per ton of ore is: Multiple Choice O $6.988. O $0.740. O $8.092. O $0.864. O $0.987.A total asset turnover ratio of 3.0 indicates that: Multiple Choice O For every $1 in sales, the firm acquired $3.0 in assets during the period. O For every $1 in assets, the firm produced $3.0 in net sales during the period. O For every $1 in assets, the firm earned gross profit of $3.0 during the period. O For every $1 in assets, the firm earned $3.0 in net income. O For every $1 in assets, the firm paid $3.0 in expenses during the period.A company had average total assets of $937,000. Its gross sales were $1,099,000 and its net sales were $960,000. The company's total asset turnover equals: Multiple Choice O 1.02. O 0.85. O 1.17. O 1.14. O 0.98.On December 1, Victoria Company signed a 90-day, 4% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.) Multiple Choice O $50 O $150 O $0 O $100 O $600On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $26,100. What is the maturity value of the note on March 1? (Use 360 days a year.) Multiple Choice O $26,100 O $26,796 O $26,332 O $26,448 O $26,564A company's fixed interest expense is $25,000, its income before interest expense and income taxes is $206,250. Its net income is $96,950. The company's times interest earned ratio equals: Multiple Choice O 0.26. O 8.25. O 0.47. O 0.12. O 2.13.An employee earned $44,800 during the year working for an employer when the maximum limit for Social Security was $117,000. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is: Multiple Choice O $3,427.20. O $6,854.40. O $2,777.60. O $649.60. O $6,854.40.Employees earn vacation pay at the rate of one day per month. During the month of July, 35 employees qualify for one vacation day each. Their average daily wage is $110 per day. What is the amount of vacation benefit expense to be recorded for the month of July? Multiple Choice O $110.0 O $3,850.0 O $38,500.0 O $35.0 O $385.0A company estimates that warranty expense will be 3% of sales. The company's sales for the current period are $248,000. The current period's entry to record the warranty expense is: Multiple Choice O Debit Warranty Expense $7,440; credit Estimated Warranty Liability $7,440. O Debit Estimated Warranty Liability $7,440; credit Warranty Expense $7,440. O Debit Estimated Warranty Liability $7,440;credit Cash $7,440. O Debit Warranty Expense $7,440; credit Sales $7,440. O No entry is recorded until the items are returned for warranty repairs.Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $965,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is: Multiple Choice O Debit Estimated Bonus Payable $965,000; credit Cash $965,000. O Debit Employee Bonus Expense $965,000; credit Prepaid Employee Bonus $965,000. O No entry since the bonuses are not paid until January. O Debit Unearned Bonuses $965,000; credit Bonus Payable $965,000. O Debit Employee Bonus Expense $965,000; credit Bonus Payable $965,000.Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $5,000 of cash sales that are subject to an 7% sales tax, what is the journal entry to record the cash sales? Multiple Choice O Debit Cash $5,000; credit Sales $5,000; and record the taxes when paid. O Debit Sales Taxes Payable $350; debit Cash $4,650; credit Sales $5,000. O Debit Cash $5,000; credit Sales $4,650; credit Sales Taxes Payable $350. O Debit Accounts Receivable $5,350; credit Sales $5,000; credit Sales Taxes Payable $350. O Debit Cash $5,350; credit Sales $5,000; credit Sales Taxes Payable $350