Fri Nov 11 2022 @ Question 1 A repair to an appliance under warranty occurs within the warranty period. What adjustment is made? Q Question 18 Simba Trailers specializes in assembling containers for trucks and uses the straight-line method to depreciate long term assets. They use heavy machinery in an assembly plant with the following history: January 2, 2010: Bought equipment for $520,000 with a useful life of 5 years and a salvage value of $20,000 July 1, 2012: Annual inspection this year indicates that the total useful life of the equipment must be revised to 10 years due to less usage than anticipated and there will be no salvage value at the end of its useful life October 1, 2013: Simba Trailers sold this equipment for $280,000 cash The journal entry to recognize depreciation expense on December 31, 2012, the year of the revision will include: C-Estimated Warranty Payable is debited. 2/2 B-Credit to Accumulated Depreciation for $40,000 2/2 Question 17 On January 1, 2007, Lasche Auto Sales and Service purchased a vehicle for use in the business at a cost of $44,000. The vehicle has a 4-year useful life with an expected residual value of $4,000. The company has a December 31 year-end and uses straight-line depreciation for all capital assets. On July 1, 2009, the company sold the vehicle for proceeds of $22,000. The journal entry to record the sale of the vehicle would: Question 16 A-debit loss on sale of assets, $3,000 1/2 X B-False 2/2