MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) The long-term asset that is not depreciated or amortized is 1) A) land improvement C) land B) office computers D) leasehold improvement. 2) A machine is purchased for $80,000. The transportation from the seller was $1000, installation 2) costs were $1000 and taxes on the purchase price were $400.Testing runs of the new machine cost $2000. What is the cost of the machine? A) $82,000 B) $80,000 C) $84,400 D) $82400 3) The journal entry to record an addition to an office building would include: A) debit to Repair Expense. C) credit to Accumulated Depreciation. B) debit to Office Building. D) credit to Depreciation Expense. 4) If a company capitalizes a cost that should have been expensed: A) expenses and net income will be understated in the year of the error. B) expenses will be understated and net income will be overstated in the year of the error. C) expenses and net income will be overstated in the year of the error D) expenses will be overstated and net income will be understated in the year of the error. 5) When a plant asset is fully depreciated: 5) A) the book value is equal to the salvage value. B) the asset's accumulated depreciation is higher than the historical cost of the asset. C) the depreciable cost is equal to the estimated residual value, and the asset is of no further use to the company D) the book value is zero and the asset has no market value. 6) Which intangible asset is NOT amortized? 6) A) trademarks B) copyrights C) goodwill D) patents 7) The exclusive right to produce and sell an invention such as a smart phone requires a: 7) A) copyright. B) trademark. C) license. D) patent. 8) Kolonas, Inc, sold equipment for $5400 cash. The equipment cost $73,400 and had accumulated depreciation through the date of sale of $72,000. At the date of sale, the journal entry to record the sale will have A) a Loss on Sale of Equipment for B) a Loss on Sale of Equipment for $1400. $4000. C) a Gain on Sale of Equipment for D) a Gain on Sale of Equipment for $1400 $4000. 9) Which of the following liability accounts is usually NOT an accrued liability 9) A) Taxes Payable C) Wages Payable B) Notes Payable. D) Interest Payable