I. Multiple Choice (3 points each) 1. A company purchased a commercial dishwasher by paying cash of $8.000. The dishwasher's fair value on the date of the purchase was $10,000. The company incurred 5600 in transportation costs, S500 installation fees, and paid $300 annual insurance on the equipment. For what amount will the company record the dishwasher? A) $10,000. B) $9.400. C) $8,000. D) $9.100. 2. A company purchased land, a building, and equipment for one price of $800,000. The estimated fair values of the land, building, and equipment are $100,000, 5700,000, and $200,000, respectively. At what amount would the company record the land? A) $80,000. B) $90,000 C) $100,000. D) $800,000 3. The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour. The expenditure for the replacement component should be debited to: A) Repairs Expense. B) Maintenance Expense. C) Equipment. D) Gain from Repairs. 4. Which of the following statements accurately describes depreciation? 1. Depreciation is used to allocate the cost of the asset over periods benefited. II. Depreciation is used to track the fair value of the asset. III. The book value of an asset is its original cost less accumulated depreciation. A) I and III B) I and II C) II and III D) All of these statements are correct. 1. A company purchased a commercial dishwasher by paying cash of $8,000. The dishwasher's fair value on the date of the purchase was $10,000. The company incurred 5600 in transportation costs, S500 installation fees, and paid $300 annual insurance on the equipment. For what amount will the company record the dishwasher? A) $10,000. B) $9.400. C) $8,000. D) $9,100. 2. A company purchased land, a building, and equipment for one price of $800,000. The estimated fair values of the land, building, and equipment are $100,000, $700,000, and $200,000 respectively. At what amount would the company record the land? A) $80,000 B) $90,000 C) $100,000 D) $800,000 3. The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour. The expenditure for the replacement component should be debited to: A) Repairs Expense. B) Maintenance Expense. C) Equipment. D) Gain from Repairs. 4. Which of the following statements accurately describes depreciation? 1. Depreciation is used to allocate the cost of the asset over periods benefited. II. Depreciation is used to track the fair value of the asset. III. The book value of an asset is its original cost less accumulated depreciation. A) I and III B) I and II C) II and III D) All of these statements are correct. 1. A company purchased a commercial dishwasher by paying cash of $8,000. The dishwasher's fair value on the date of the purchase was $10,000. The company incurred 5600 in transportation costs, $500 installation fees, and paid $300 annual insurance on the equipment. For what amount will the company record the dishwasher? A) $10,000 B) $9,400 C) $8,000. D) $9.100. 2. A company purchased land, a building, and equipment for one price of $800,000. The estimated fair values of the land, building, and equipment are $100,000, 5700,000, and $200,000, respectively. At what amount would the company record the land? A) $80,000. B) $90,000 C) $100,000. D) $800,000. 3. The replacement of a major component increased the productive capacity of equipment from 10 units per hour to 18 units per hour. The expenditure for the replacement component should be debited to: A) Repairs Expense. B) Maintenance Expense. C) Equipment. D) Gain from Repairs. 4. Which of the following statements accurately describes depreciation? 1. Depreciation is used to allocate the cost of the asset over periods benefited. II. Depreciation is used to track the fair value of the asset. III. The book value of an asset is its original cost less accumulated depreciation. A) I and III B) I and II C) II and III D) All of these statements are correct