Accompanying the bank statement was a debit memo for bank service charges. On the bank reconcillation, the item is a. a deduction from the balance per company's records b. on addition to the balance per bank statement c. a deduction from the balance per bank statement d. an addition to the balance per company's records 61. Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for the current and future years is a. $11,636 b. $16,000 c. $11,000 d. $8,000 62. Residual value is also known as all of the following except a. scrap value b. trade in value c. salvage value d. net book value 63. A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? a. $2.000 loss b. $1,500 loss c. $3,500 gain d. $2,000 gain 64. Expenditures for research and development are generally recorded as a. current operating expenses b. assets and amortized over their estimated useful life c. assets and amortized over 40 years d. current assets 65. Each year there is a ceiling for the amount that is subject to all of the following except a. social security tax b. federal income tax c. federal unemployment tax d. state unemployment tax