Multiple-Choice Exercise 7-1 Anniston Company purchased equipment and incurred the following costs: Purchase price $52,000 Cost of trial runs 750 Installation costs 250 Sales tax 2,600 What is the cost of the equipment? Oa. $52,000 Ob. $54,600 Oc. $54,850 Od. $55,600 Multiple-Choice Exercise 7-2 The cost principle requires that companies record tangible capital assets at: Oa. fair value. Ob. book value. Oc. historical cost. d. market value. Multiple-Choice Exercise 7-3 When depreciation expense is recorded each period, what account is debited? a. Depreciation Expense Ob. Cash Oc. Accumulated Depreciation Od. The tangible capital asset account involved Multiple-Choice Exercise 7-4 Fontaine Inc. acquired a machine for $600,000 on January 1, 2018. The machine has a salvage value of $10,000 and a five-year useful life. Fontaine expects the machine to run for 15,000 machine hours. The machine was actually used for 4,800 hours in 2018 and 3,150 hours in 2019. What would be the balance in the accumulated depreciation account at December 31, 2019, if the straight-line method were used? a. $216,000 Ob. $236,000 Oc. $240,000 Od. $250,000 Cornerstone Exercise 7-22 Revision of Depreciation On January 1, 2016, Shapiro Inc. purchased a machine for $115,000. Shapiro depreciated the machine with the straight-line depreciation method over a useful life of 10 years, using a residual value of $5,000. At the beginning of 2018, a major overhaul, costing $30,000, was made. After the overhaul, the machine's residual value is estimated to be $7,500, and the machine is expected to have a remaining useful life of 11 years. Required: Determine the depreciation expense for 2018. Brief Exercise 7-30 Acquisition Cost Desert State University installed an HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed 10 five-tonne air-conditioning units at a total cost of $120,000 to keep the board cool in the desert heat. Required: Determine the cost of the video board