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80. The first year's amortization for an asset costing $100,000 that is expected to last 4 years with no residual value using the sum-of-the-digits method is A. $25,000 B. $30,000 C. $35,000 D. $40,000 E. None of the above. 81. A machine costing $100,000 is expected to have a useful life of 100,000 machine hours with a salvage value of $25,000 at the end of 5 years. During the first year the machine worked 40,000 machine hours. What was the amortization for the first year? A. $15,000 B. $20,000 C. $30,000 D. $40,000 E. None of the above. 82. Which of the following would be classified as a betterment for a delivery truck? A. routine maintenance B. replacement of a motor C. installation of an air conditioning unit D. new tires E. None of the above. 83. Purchases totaled $500,000, purchase returns totaled $40,000, purchase discounts totaled $50,000 and freight-in totaled $60,000. What was net purchases? A. $610,000 B. $550,000 C. $570,000 D. $470,000 E. None of the above 84. Net income for the period was $40,000. Accounts receivable increased $5,000, accounts payable increased $6,000 and inventory remained the same. The cash flow from operations using the indirect method was A. $51,000 B. $41,000 $39,000 D. $29,000 E. None of the above. 85. A new piece of equipment was purchased for $100,000 using a new loan for the same amount. The transaction would be reflected in the cash flow statement by A. an increase in cash from investing of $100,000 B. an increase in cash from financing of $100,000 C. a decrease in cash from operations of $100,000 D. a decrease in cash from financing of $100,000 E. None of the above. 86. With sales of $500,000 and an increase in accounts receivable of $50,000, the cash receipts from customers are A. $450,000 B. $500,000 C. $550,000 D. $600,000 E. None of the above. 87. Accounts payable increase $40,000, inventory increases $20,000, cost of sales were $600,000. The cash paid for goods and services totaled A. $640,000 B. $620,000 C. $600,000 D. $580,000 E. None of the above 88. The sale of capital assets for $10,000 cash created a gain on disposal of $6,000. This would be reflected on the cash flow statement using the indirect method by A. an addition to cash provided by operations B. an addition to cash provided by investment C. an addition to cash provided by financing D. none of the above 89. An analysis of a particular cost incurred in a factory revealed that the cost averages $0.40 per machine-hour at an activity level of 20,000 machine hours and increases to an average of $0.50 per machine-hour at an activity level of 16,000 machine hours. Assuming that this activity is within the relevant range, what is the total expected cost if the activity level is 17,300 machine hours? A. $1,600 B. $6,960 C. $8,000 D. $9,000 E. None of the above 90. Given the cost formula Y = $30,000 + $5X, what is the expected total cost at an activity level of 16,000 units? A. $30,000 B. $46,000 C. $80,000 D. $1,10,000 E. None of the above 91. Hadron Company incurred $40,000 to ship 19,000 pounds and $34,000 to ship 16,000 pounds. If the company ships 18,000 pounds, what is its expected shipping expense? A. $37,000 B. $37,895 C. $38,000 D. $38,250 E. None of the above 92. Dane Company's predetermined overhead rate is based on direct labor hours (DLHS). At the beginning of the current year, the company estimated that its manufacturing overhead would total $220,000 during the year. During the year, the company incurred $200,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was under-applied by $8,000 during the year. If the predetermined overhead rate was $40.00 per DLH, how many DLHs were worked during the year? A. 5,500 hours B.5,200 hours C. 4,800 hours D. 5,000 hours E. None of the above 93. Leigh Company's predetermined overhead rate is based on direct labor costs. The company's Work in Process account has a balance of $2,400, which relates to the one job that was in process at the end of an accounting period. The related job cost sheet includes total charges of $400 for direct materials and $1,000 for direct labor. If overhead is applied on the basis of direct labor costs, what is the company's predetermined overhead rate? A. 100% B. 50% C. 40% D. 17% E. None of the above 94. Which one of the following methods for inventory valuation may be misleading when the units are identical? A. FIFO B. Average C. Both FIFO & Average D. None 95. During September, Khan had sales of 148,000, which made a gross profit of 40,000. Purchases amounted to 100,000 and opening inventory was 34,000. The value of closing inventory was? A. 24,000m B. 26,000 C. 42,000 D. 54,000 E. None of the above 96. Net Purchases equal the invoice amount and? A. Plus freight-in, plus discounts B. Less purchase returns, plus purchase allowances C. Plus freight-in, less purchase discounts D. Plus discounts, less purchase returns E. None of the above 97. Sales revenues are usually considered earned when? A. Cash is received from credit sales B. An order is received C. Goods have been transferred from the seller to the buyer D. Adjusting entries are made E. None of the above