life is 25 years, no residual value, and they are using straight-line depreciation. On October 1, 2019, they spent $46,000 on the machine to double its capacity and $5,000 on routine cleaning. The company's year end is September 30. What should the depreciation expense be for the year ending September 30, 20207 a) $10,000 b) $30,000 c) d) $11,917 $12,200 and has recorded accumulated depreciation on it to d include a: e company originally paid $28,000 on June 30, 2013 ate of $15,000. The entry to record the sale would credit to accumulated depreciation for $15,000 b) c) d) a) debit to trucks for $28,000. credit to gain on sale of truck for $3,000 debit to loss on sale of truck for $3,000 19. Losses on the cash sale of capital assets b) c) d) are the excess of the cash proceeds over the carrying value of the asset are the excess of the cash proceeds over the market value of the asset. are the excess of the carrying value of the asset over the cash proceeds. are the excess of the carrying value of the asset over the market value. 20. Which of the following statements is true with respect to intangible assets with indefinite lives? a) They should be amortized over a period of 40 years. b) They should be expensed to income in the year they are acquired. c) They should be evaluated each year to determine if there has been any impairment in their val d) They are never amortized or written down but remain on the company's balance sheet at their original cost forever 21. Which of the following is not a required characteristic of a liability? a) b) c) d) There is a probable future sacrifice of resources. There is a fixed payment amount and payment date. There is little discretion to avoid the obligation. The event giving rise to the liability has already occurred. 020, Able Co. has a $500,000 15-year mortgage outstanding. Over the next year t company will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 rincipal repayment. Which of the following best represents how the mortgage will be reported on uly 31, 2020 statement of financial position? Current Liabilities $26,500 Non-Current Liabilities $473,500 $440,000 $440,000 $473,500 ) $26,500 $60,000 $60,000