1. Mack purchased merchandise from Trask on November 1, 2020. Trask accepted Mack's $4,800, 3-month, 10% note as payment. Trask has a December 31 year end. What entry should Trask make on February 1, 2021 when the note is paid?

A) Cash		4,920
	Interest Revenue		120
	Notes Receivable		4,800

B) Cash		4,920
	Notes Receivable		4,920

C) Cash 4,920		Page 2
	Interest Revenue		80
	Interest Receivable		40
	Notes Receivable		4,800

D) Cash		4920
	Interest Revenue		40
	Interest Receivable		80
	Notes Receivable		4,800

E) Cash		4920
	Interest Receivable		120
	Notes Receivable		4,800

2. Zinnworld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. The land should be recorded in the books at:

A) $56,522.

B) $34,783.

C) $40,000.

D) $36,364.

E) $48,696.

3. Zinnworld used straight-line depreciation for a piece of equipment that cost $12,000, 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 useful 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.

4. The appropriate way to amortize goodwill is:

A) Straight-line over a maximum of 40 years.

B) Straight-line over a maximum of 20 years.

C) Diminishing-balance over a period not to exceed 20 years.

D) Over the estimated useful life of the goodwill.

E) Goodwill is not amortized.