Hawaiian Airlines sold flight equipment for $11 million cash at the end of its 10th year of use. The flight equipment originally cost $30 million and was depreciated using the straight-line method with zero residual value and a useful life of 25 years. After updating the depreciation, what is the equipments book value at the end of the 10th year and what is the result of the equipments sale?

• A. None of the choices is correct.
• B. Net book value of $9.6 million and a gain of $1.4 million
• C. Net book value of $18 million and a loss of $7 million
• D. Net book value of $9.6 million and a gain of $7 million
• E. Net book value of $18 million and a loss of $1.4 million

Amazon Inc. purchased a depreciable asset for $52,000 on April 1, 2020. The asset will be depreciated using the straight-line method over its five-year useful life. Assuming the asset's salvage value is $2,000, what will be the amount of accumulated depreciation on this asset on December 31, 2021?

• A. 17,500
• B. None of the choices is correct.
• C. 20,800
• D. 20,000
• E. 10,000
• F. 13,750

Which of the following is NOT a principle of internal control?

• A. Apply technological controls.
• B. All of the choices are correct.
• C. Perform regular and independent reviews.
• D. Maintaining security by having one person track and record assets.
• E. Divide responsibilities for related transactions.
• F. Separate recordkeeping from custody of assets.