Mack purchased merchandise from Task on November 1, 2020 Taskeptod Mack's 4.800,month. 10 note a payment. Task lusa December 31 year end. What entry should Task make an February 1, 2021 when the site is paid A) Cash 130 Revenue Notes 4300 Receive B) Cash Notes 4,900 Receivable Page 2 Interest Review Interest 46 Receivable Notes Receivable 4.00 D) Cash 1920 Interest levere Interest Receivable Notes Receivable 4.800 E) Cash 1920 Interest Receivable Notes Receivable 120 4.800 4. Zinud purchased property for $100,000. The property included a building, parking lot, and land. The building was appeained at $65.000, the land at $40,000, and the parking lot at 10,000. The land should be recorded in the boat A) 556.522 B 54,781 $40.000 D) 56.36 E> 548.696 S. Zwol used straight-line depreciation for a piece of equipment that co 512,000, had a residual value of $2,000, and a five-year service life. At the end of the third year, the residual value was revised to 1.200 and the seful life increased by one year) to a total of 6 years. The the amount of depreciation expense for each of the remaining years of the asset's useful life is A) $1,000 B) $1,467 C) $1.600 D) $1,800 E) $2,160 The appropriate way to amortize goodwill is: A) Straight-line over a maximum of 40 years B) Straighe-line over a maximum of 20 years ) Diminishing-balance over a period not to exceed 20 years. D) Over the estimated useful life of the goalwill Goodwill is not amortized Page 3 7. Rashid Lold 12.000 worth of trampolines with a one year warranty. The company estimates that 2% of the sales will result in warranty work. Rashid should A) Recognize warranty expense in the same year as the sale. B) Recognize warranty expense at the time warranty work is performed C) Recognize warranty liability in the same year as the sale D) Recognize warranty expense and liability in the same year as the sale. 5 Recognise warranty expense at the time warranty work is performed and warranty liability in the same year as the sale 8. Under IFRS, contingent liabilities must be recorded if A) The future event is probable and the amount can be reasonably estimated B) The future event is unlikely C) The future event is likely and the amount can be reasonably estimated D) The future event is unlikely, but the amount can be reasonably estimated E) The future event is probable, but the mount cannot be reasonable estimated. 9. Fres accepted in advance from a client A) Are recorded as cared revenues on the income statement B) Increase profil C) Are recorded as liabilities D) Do not increase assets None of the above mswers are correct. 10. Harmonized sales tax payable: A) is an estimated liability B) is a contingent liability C) Is a current liability D) is a business expense E) All of the above mswers are correct