Choose:ggie purchases land for $40,000 and additionally, pays his lawyer $5,000 to advise him in the purchase. The $5,000 would be debited to: a. Legal Expense b. Miscellaneous Expense c. Legal Revenue d. Land Choose: Ward Inc. owns Equipment with cost of $30,000 and accumulated depreciation of $19,000. The Equipment is sold for $14,000 cash. Which of the following is true? a. Gain on Disposal will be debited for $3,000 b. Loss on Disposal will be credited for $1,000 c. Gain on Disposal will be credited for $3,000 d. Loss on Disposal will be credited for $3,000 Choose: Who pays unemployment taxes? A. employer only b. employer and employee C. employee only d. neither employer nor employee Choose: Johnson purchases a piece of equipment with an estimated useful life of 4 years. The DDB rate for this asset would be: a. 8% b. 125 C. .50 d. 25 Choose: On which financial statement would a gain or loss be reported? A. Income Statement b. Balance Sheetc. Owner's Equity Statement d. None of these Choose: Goodwill is an intangible asset that arises when: a. a company sells a really popular product b. the company wins the President's Award C. Mr. O'Neill brings a box of Krispy Kremes to class d.one company purchases another company, paying more for it than the value of its net assets Choose: Leonard purchased a delivery truck and hired a local artist $2,500 to paint his company name on the side of the truck. Which account would be debited for this cost? A. debit Art Expense b. debit Advertising Expense c. debit the Repairs Expense d. debit Truck Choose: William sold equipment and made a loss of $3,000. Would the loss be a debit item or a credit item, and on which financial statement would the loss appear? A. credit the loss and report on the balance sheet b. debit the loss and report on the income statement c. debit the loss and report on the balance sheet d. none of these Choose: Who pays unemployment taxes? A. employer only b. employee only c. employer and employee d. neither employer nor employee 10 Choose: Elgin borrows $10,000 on a 6-month 6% note. The interest expense Elgin will pay at maturity on this note will be: a. $60 b. $600 c. $6,000 d. $300 11 Choose: Warren has equipment with cost of $22,000 and accumulated depreciation of $16,000. If Warren sells the equipment for $7,000, what is the gain or loss? A. gain of $7,000 b.gain of $1,000 loss of $1,000 d. gain of $13,000 12 Choose: How are partners compensated in a partnership? A. each partner receives a cash payment on 12/31 b. each partner gets a salary paid in cash c. each partner's capital receives a portion of the net income or loss in closing d. interest expense is debited, and each partner receives the interest in cash 13 Choose: How are assets contributed by the partners valued in the partnership? A. valued at original cost b.valued at original cost minus accumulated depreciation c.valued at fair market value d. valued at an amount specified by the contributing partner 14 Choose: How are Research and Development costs recorded and on which statement will they be reported? A. an asset reported on the balance sheet b. an expense reported on the income statement c. a liability reported on the balance sheet d. none of these 15 Choose: Which of the following depreciation methods is accelerated? A. straight line b.units of activity c. double declining balance e. all of these are accelerated 16 Choose: When constructing a depreciation schedule, the accountant must remember that the book value at the end of the asset's life must be equal to the a. salvage value b.cost c. book value d. depreciable cost 17 Choose: Clark sold an asset this year for $4,000, but the book value of the asset was $7,000. What effect will this transaction have on the income statement for the year? A. an increase in net income b. a decrease in net income c. no effect on net income d. we don't know 18 Choose: Social Security is a government program that a. provides income to citizens after they retire b. pays people when they become unemployed c. provides vacation pay to working people d. none of these 19 Choose: Tom and Jerry went into business as a partnership with Tom investing cash of $90,000 and Jerry investing $10,000. They had no partnership agreement. If they incur a $20,000 loss, how must they split the loss? A. in the ratio of their investment b. 90:10 C. 60:40 d. 50:50 20 Choose: Social Security taxes (Social Security and Medicare) are paid by... a. employee only b. employer and employee c. neither employer nor employee d. employer only Choose: Grandfork Company purchased a patent for $32,000 on July 1, 2020. The patent has a life of 8 years, no salvage value. If Grandfork records patent amortization on December 31, 2020, how much Patent Expense will be recorded? a. $32,000 b. $2,000 c. $4,000 d. None of these