A) It is used in the operations of a business C) Its a short seful life B) is available for sale to customers in the ordinary course of business D) It will have tregligible wheat the end of its life 3) Which of the following show the included in the cost of land? A) cost to build sidewalks on the land B) cost to clear the land of old buildings C) cost of installing signage D) cost of installing fences 4) On January 1, 2018, Jordan, Inc. acquired a machine for $1.100.000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be 561.000. Calculate the depreciation expense per year using the straight-lino method A) $220,000 B) $207,800 C) $268,800 D) $275,000 5) The cost of an asset is $1,070,000, and its residual value is $220,000. Estimated useful life of the asset is ten years. Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) A) $170,000 B) S214,000 C) $107,000 D) $85,000 6) A truck costs $307,000 and is expected to be driven 113,000 miles during its five-year life. Residual value is expected to be zero. If the truck is driven 31,000 miles during the first year, how much depreciation should the business record under the units-of-production method? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) A) 596,050 B) $28,107 C) $84,320 D) $56,070 7) A photocopier cost $105,000 when new and has accumulated depreciation of $96,000. If the business discards this plant asset, the result is A) a loss of $9000 B) a loss of S96,000 C) a gain of $9000 D) no gain or no loss 8) An asset was purchased for $37,000 on January 1, 2019. The asset's estimated useful life was five years, and its residual value was $9000. The straight-line method of depreciation was used. Calculate the gain or loss if the asset is sold for $19,000 on December 31, 2019, the last day of the accounting period. A) S6200 gain B) 512,400 loss C) $12,400 gain D) no gain or no loss 9) Which of the following is the amount the borrower must pay back to the bondholders at maturity? A) market value B) present value C) stated interest value D) principal amount 10) The reason investors buy bonds is to A) earn interest B) own controlling interest in the company C) exercise voting rights in a company D) receive dividend payments 11) Which of the following statements is true of a bond that is issued at a premium? A) The bond will be issued at an amount above face value, B) The stated interest rate is lower than the prevailing market interest rate. At maturity, the bond will repay an amount that is greater than the face value. D) The bond will be issued at par. 12) The amount of cash interest the borrower pays each year is based on the A) market conditions on the day of payment B) market interest rate C) stated interest rate D) effective interest rate 13) A bond is issued at a discount when a bond's stated interest rate is A) equal to the market interest rato B) more than the effective interest rate C) less than the market interest rate D) more than the market interest rate 14) On July 1, 2019, Michigan Company has bonds with balances as shown below. Bonds Payable 71,000
