1. Erins Excavation purchased a bulldozer on May 31, 2019 for $265,000. Erins Excavation estimates that they can sell the machine for $22,500 when they are done using it in 10 years. What is the net book value of the bulldozer in the December 31, 2019 balance sheet?
   1. $242,500
   2. $250,854
   3. $240,750
   4. $249,542

2. Refer to the Erins Excavation problem in #1 above. How much depreciation expense will be shown in the income statement for the year ended December 31, 2020?
   1. $24,250
   2. $38,396
   3. $14,146
   4. $22,500

3. On July 1, 2019, Big City Bank purchased a new, high-tech copier. The copier cost $4,100 and they incurred the following expenses related to it: shipping fees of $150, sales tax of $335, maintenance costs during 2019 of $175, and installation costs of $220. If the copier has an estimated life of 5 years and no salvage value, then how much accumulated depreciation will be shown on the December 31, 2020 balance sheet?
   1. $1,230
   2. $481
   3. $961
   4. $1,442

4. On which financial statement are capitalized expenditures included?
   1. Income Statement
   2. Statement of Stockholders Equity
   3. Balance Sheet
   4. Statement of Cash Flows