Answer the following questions on PP&E and Intangibles:

1. Sysco purchases office equipment for $40,000 on 1/1/21. Sysco estimates that the equipment will have a useful life of 10 years and a residual value of $5,000 and calculates depreciation expense using the straight-line method. On 1/1/29 (i.e., after eight years), Sysco sells the office equipment for $5,000. The journal entry to record this disposal will include a:

a) Loss on Sale of PP&E of $7,000

b) Loss on Sale of PP&E of $5,000

c) Gain on Sale of PP&E of $7,000

d) Gain on Sale of PP&E of $5,000

2. Breyer's Ice Cream purchases manufacturing equipment for $300,000 on 1/1/21. Breyer's estimate that the equipment has a useful life of 10 years and a $25,000 residual value. Assume that Breyer's calculates depreciation using the straight-line method. Accumulated Depreciation will be $_______ as of 12/31/22 (i.e., after two years), and 2022 Depreciation Expense will be $_______.

3. Urban Outfitters purchases another clothing manufacturer for $6,000,000 cash. UO acquires all of the other company's identifiable assets ($8,000,000) and liabilities ($3,000,000). The journal entry to record this acquisition will include a debit to Goodwill of $_______.

4. ABC Co. purchases new equipment for $400,000 on 1/1/21. ABC Co. initially estimates that the equipment will have a useful life of 7 years and a residual value of $50,000 and calculates depreciation expense using the straight-line method. On 1/1/24 (i.e., after three years), ABC Co. revises its estimate; the new total useful life is 6 years and the new residual value is $40,000. ABC Co. will record _____ in Depreciation Expense in 2024.

a) $60,000

b) $70,000

c) $120,000

d) $35,000

e) $50,000