On January 1, 2013, Dexter Corporation purchased a piece of equipment, which is being depreciated on a straight-line basis over a useful life of 5 years, with a residual value of $20,000. The equipment's accumulated depreciation account has a credit balance of $78,000 and an adjusted credit balance of $100,000 on January 1, 2015 and December 31, 2015, respectively. The original cost of the equipment is

$100,000

$ 20,000

$110,000

$130,000

None of the other alternatives are correct

7.Eli's Chicken Shop owns a machine with an original cost of $28,000 and accumulated depreciation of $7,000. The fair market value of the machine is $18,000 at the time that Eli's Chicken Shop exchanges its machine for a new machine with a list price of $25,000. In addition to trading in the old machine, Eli's Chicken Shop must pay $6,000 in cash.

Assume at the time the exchange is recorded on Eli's Chicken Shop's books, the fair market value of the old machine ($18,000) is unknown. How would the new asset be set up on Eli's Chicken Shop's books?

None of the other alternatives are correct

$25,000

$24,000

$18,000

$27,000

9.Tiki Company has a building that cost $2,000,000 new and is 50% depreciated. The market value of the building is $3,000,000 at year end. Tiki will show on its year end balance sheet

None of the above

The building at net book value

The building at market

The building at cost

The building at both cost and net book value