January 1, 2016, Hobbes, Inc. purchased a new machine for $192,000. Its estimated useful life is 10 with an expected salvage value of $32,000. Assuming double-declining balance depreciation, 2016 depreciation expense is: $20,000 $12,000 $38, 400 $32,000 At January 1, 2016, Rodney Company had total assets of $1, 800,000 and at December 31, 2016, its total assets were $2, 200,000. Rodney's net sales for 2016 were $3, 700,000 and its 2016 net income was $110,000. Rodney's asset turnover ratio for 2016 is: 0.055 0.050 0.065 1.850 On January 1, 2015, Burns Company purchased equipment for $172,000. Burns uses straight-line depreciation and estimates an eight-year useful life and a $12,000 salvage value. On December 31, 2019, Burns sells the equipment for $60,000. In recording this sale, Burns should reflect: A $6,000 loss A $24,000 loss A $12,000 loss No gain or loss On January 1, 2014, Hoatson, Inc. purchased a machine for $74, 400. Hoatson uses straight-line depreciation and estimates an eight-year useful life and a $2, 400 salvage value. On December 31, 2021, Hoatson cannot locate a buyer for the used machine so it is scrapped. In recording the machine retirement, Hoatson should reflect: No gain or loss A $2, 400 gain A $2, 400 loss A $57, 600 loss Kangaroo Company signed a three-month, 8% note on November 1, 2016 for the purchase of $240,000 of inventory. Assuming the company's accounting period ends on December 31, which one of the following statement is not correct? On February 1, 2017, the company will debit Interest Expense for $3, 200. On December 31, 2016 the company will debit Interest Expense for $3, 200. On February 1, 2017, the company will debit Interest Payable for $3, 200. On December 31, 2016, the company will credit Interest Payable for $3, 200