Alias Enterprises purchased a depreciable asset for $27,000 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 $3,000, what will be the amount of accumulated depreciation on this asset on December 31, Year 3? a.$5,000 b.$20,000 c.$16,500 d. $6,000 e.$5,000

Bristow Enterprises purchased a depreciable asset for $31,000 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 $3,800, Bristow Enterprises should recognize depreciation expense in Year 2 in the amount of:

$5,666.67

$26,066.67

$7,750.00

$6,800.00

$27,200.00

Sidney Company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $61,000; the land at $45,800, and the parking lot at $18,200. Land should be recorded in the accounting records with an allocated cost of:

$0.

$45,800.

$36,640.

$100,000.

$42,640.

Dixon Company purchased a system on January 1 for $5,500. This system has a useful life of 5 years and a salvage value of $450. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?

$1,010.

$2,200.

$2,020.

$1,256.

$1,320.

Stewart 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?

$32,335.

$31,175.

$63,510.

$34,181.

$32,955.

The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both taxes are applied to the first $6,500 of an employee's pay. Assume that an employee earned total wages of $12,100. What is the amount of total unemployment taxes the employer must pay on this employee's wages?

$750.20.

$653.40.

$403.00.

$96.80.

Sue, an employee, earned $5,100 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $117,000 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is:

Zero, since the FICA tax is a deduction from an employee's pay, and not an employer tax.

$390.15.

$73.95.

$316.20.

$780.30.

Tippon Company is required by law to collect and remit sales taxes to the state. If Tippon has $4,500 of cash sales that are subject to an 6% sales tax, what is the journal entry to record the cash sales?

Debit Cash $4,770; credit Sales $4,500; credit Sales Taxes Payable $270.

Debit Cash $4,500; credit Sales $4,230; credit Sales Taxes Payable $270.

Debit Cash $4,500; credit Sales $4,500; and record the taxes when paid.

Debit Sales Taxes Payable $270; debit Cash $4,230; credit Sales $4,500.

Debit Accounts Receivable $4,770; credit Sales $4,500; credit Sales Taxes Payable $270.

Sheldon and Smart are forming a partnership. Sheldon is investing a building that has a market value of $91,000. However, the building carries a $45,000 mortgage that will be assumed by the partnership. Smart is investing $42,000 cash. The balance of Sheldon's Capital account will be:

$88,000.

$46,000.

$45,000.

$91,000.

$49,000.