I need help with the following questions and I've attached two picture that is required for those questions

Question 1 ( 4 points)

You purchase a $2,000 coin-op video game for your software company.You remove the coin-op mechanism so that the game can be played for free and put it in your break room.(use the T2-Tax guide provided, see page 41)

a) What capital class is the machine? Justify your answer. (2 points)

b) What is the first year depreciation for the game? (1 point)

c) What class would it be if you left on the coin-op mechanism? (1 point)

Question 2 (3 points )

You sell the video game described in the previous question for $1,500.At the time of sale you have claimed a total of $800 in depreciation.What is the impact of the sale on earnings? Explain your answer. (3 points)

Question 3 ( 1 point)

Select all the points that must be true for an item to be classified as an asset, or capital expenditure.

Group of answer choices

a) It must be of significant value.

b) It must be made of wood, plastic, metal, or concrete.

c) It must provide value to the company for more than one year.

d) You must pay cash, items purchased on credit may not be counted as assets.

Question 4 ( 1 point)

Why would a small business owner look for ways to expense a given purchase rather than capitalize it.

Group of answer choices

a) It's fun to say, "Just expense it"

b) All the tax savings will be realized this year.

c) It will spread the tax savings over many years.

d) It will make the company profit look higher this year.

Question 5 ( 1 points)

A Balance Sheet can best be described as:

Group of answer choices

a) A summary of the companie's income, expenses, and profits for the period.

b) A snapshot of all the company owns and owes.

c) A detailed listing of every transaction for the period.

d) A report detailing how much money the company can generate in a year, not including investment income.

Question 6 (1point)

Select all the statements that are true about an Income Statement.

Group of answer choices

a) It is always for a specific period of time.

b) It is a snapshot of account balances at one specific point in time.

c) It shows how much profit the company has earned during a specific period.

d) It shows how much cash a company has in the bank,

Question 7 (1 point)

When you invoice a customer the impact on Accounts Receivable and Accounts Payable is:

Group of answer choices

a) Accounts receivable increases

b) Accounts receivable decreases

c) Accounts payable increases

d) Accounts payable decreases

e) Accounts receivable and accounts payable do not change

Question 8 ( 1 point)

When you are invoiced by a supplier the impact on Accounts Receivable and Accounts Payable is:

Group of answer choices

a) Accounts receivable increases

b) Accounts receivable decreases

c) Accounts payable increases

d) Accounts payable decreases

e) Accounts receivable and accounts payable do not change

Question 9 ( 1 point)

When you pay an invoice the impact on Accounts Receivable and Accounts Payable is:

Group of answer choices

a) Accounts receivable increases

b) Accounts receivable decreases

c) Accounts payable increases

d) Accounts payable decreases

e) Accounts receivable and accounts payable do not change

Question 10 ( 1 point)

When make a loan payment to the bank the impact on Accounts Receivable and Accounts Payable is:

Group of answer choices

a) Accounts receivable increases

b) Accounts receivable decreases

c) Accounts payable increases

d) Accounts payable decreases

e) Accounts receivable and accounts payable do not change

Question 11 ( 1 point)

Which entry in the attached accounting equation log best matches this transaction?

Borrow $200 from the bank.

Group of answer choices

a) A

b) B

c) C

d) D

e) E

Question 12 ( 1 point)

Which entry in the attached accounting equation log best matches this transaction?

Invoice your Mother $200 for baby-sitting services.

Group of answer choices

a) A

b) B

c) C

d) D

e) E

Question 13 ( 1 point)

Which entry in the attached accounting equation log best matches this transaction?

Process your Mothers payment of $200

Group of answer choices

a) A

b) B

c) C

d) D

e) E

Question 14 ( 1 point)

Which entry in the attached accounting equation log best matches this transaction?

Receive a $200 toaster for the break-room, you have 30 days to pay.

Group of answer choices

a) A

b) B

c) C

d) D

e) E

Question 15 (1 point)

Which entry in the attached accounting equation log best matches this transaction?

Pay for the toaster.

Group of answer choices

a) A

b) B

c) C

d) D

e)

List of CCA rates and classes The following chart is a partial list and description of the most common capital cost allowance (CCA) classes. You will find a complete list in Schedule II of the Income Tax Regulations. Class Description CCA number rate Most buildings made of brick, stone, or cement acquired after 1987, including their component parts such as 4% electric wiring, lighting fixtures, plumbing, heating and cooling equipment, elevators, and escalators (additional allowance of 6% for buildings used for manufacturing and processing in Canada and 2% for buildings used for other non-residential purposes, for buildings acquired after March 18, 2007) w Most buildings made of brick, stone, or cement acquired before 1988, including their component parts as listed in Class 1 above 6 Buildings made of frame, log, stucco on frame, galvanized iron, or corrugated metal that are used in the 10% business of farming or fishing, or that have no footings below-ground; fences and most greenhouses Canoes, boats, and most other vessels, including their furniture, fittings, or equipment 15% 8 Property that is not included in any other class such as furniture, calculators and cash registers (that do not 20% record multiple sales taxes), photocopy and fax machines, printers, display fixtures, refrigeration equipment, machinery, tools costing $500 or more, and outdoor advertising billboards and greenhouses with rigid frames and plastic covers 9 Aircraft, including furniture, fittings, or equipment attached, and their spare parts 25% Automobiles (except taxis and others used for lease or rent), vans, wagons, trucks, buses, tractors, trailers, 30% drive-in theatres, general-purpose electronic data-processing equipment (for example, personal computers) and systems software, and timber-cutting and removing equipment 10.1 Passenger vehicles costing more than $30,000 if acquired after 2000 30% 12 Chinaware, cutlery, linen, uniforms, dies, jigs, moulds or lasts, computer software (except systems 100% software), cutting or shaping parts of a machine, certain property used for earning rental income such as apparel or costumes, and videotape cassettes; certain property costing less than $500 such as kitchen utensils, tools, and medical or dental equipment acquired after May 1, 2006 13 Property that is leasehold interest (the maximum CCA rate depends on the type of leasehold and the terms n/a of the lease) 14 Patents, franchises, concessions, and licences for a limited period - the CCA is limited to whichever is less: the capital cost of the property spread out over the life of the property; or n/a the undepreciated capital cost of the property at the end of the tax year in Class 44 Class 14 also includes patents, and licences to use patents for a limited period, that you elect not to include 16 Automobiles for lease or rent, taxicabs, and coin-operated video games or pinball machines; certain tractors 40% and large trucks acquired after December 6, 1991, that are used to haul freight and that weigh more than 11,788 kilograms 17 Roads, sidewalks, parking-lot or storage areas, telephone, telegraph, or non-electronic data communication 8% switching equipment 38 Most power-operated movable equipment acquired after 1987 used for moving, excavating, placing, or 30% compacting earth, rock, concrete, or asphalt 39 Machinery and equipment acquired after 1987 that is used in Canada mainly to manufacture and process 25% goods for sale or lease 43 Manufacturing and processing machinery and equipment acquired after February 25, 1992, described in 30% Class 39 above 44 Patents and licences to use patents for a limited or unlimited period that the corporation acquired after 25% April 26, 1993-however, you can elect not to include such property in Class 44 by attaching a letter to the return for the year the corporation acquired the property. In the letter, indicate the property you do not want to include in Class 44 15 Computer equipment that is "general-purpose electronic data processing equipment and system software" 45% included in paragraph f of Class 10 acquired after March 22, 2004. Also see class 50 and 52 16 Data network infrastructure equipment that supports advanced telecommunication applications, acquired 30% after March 22, 2004 - it includes assets such as switches, multiplexers, routers, hubs, modems, and domain name servers that are used to control, transfer, modulate and direct data, but does not include office equipment such as telephones, cell phones or fax machines, or property such as wires, cables or structures 50 General-purpose computer equipment and systems software acquired after March 18, 2007, that is not used 55% principally as electronic process control, communications control, or monitor equipment, and the systems software related to such equipment, and data handling equipment that is not ancillary to general-purpose computer equipment 52 General-purpose computer equipment and systems software acquired after January 27, 2009, and before 100% February 2011 www.cra.gc.ca 41Test 2, Question 8, Accounting Equation Log: Income Statement Balance Sheet Assets Liabilities = Equity Revenue Expenses = Profit Cash at Bank A/R A/P Bank Owner's Retained 200 2001 Loans 2001 Equity Earnings 200 200 200 -200 200 -200 200 -200 -200 2001 -200