On January 1, a machine with a useful life of five years and a salvage value of $30000was purchased for $130000. What is the depreciation expense for year 2 under straight-line depreciation?

$78000.

$15600.

$20000.

$62400.

Ayayai Corp.bought equipment on January 1, 2022. The equipment cost $470000and had an expected salvage value of $70000. The life of the equipment was estimated to be6years. The depreciable cost of the equipment is

$70000.

$470000.

$400000.

$66667.

Cullumber Companypurchases land for $120000cash.Cullumberassumes $5100in property taxes due on the land. The title and attorney fees totaled $2300.Cullumberhas the land graded for $3600. They paid $18000for paving of a parking lot. What amount doesCullumberrecord as the cost for the land?

$131000.

$125900.

$120000.

$149000.

Equipment with a cost of $726200has an estimated salvage value of $35000and an estimated life of4years or14400hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used for3600hours?

$181550.

$186550.

$190300.

$172800.

Ayayai Corp.purchased a delivery van with a $50000list price. The company was given a $4000cash discount by the dealer and paid $2500sales tax. Annual insurance on the van is $1000. As a result of the purchase, by how much willAyayai Corp.increase its van account?

$49000.

$48500.

$50000.

$46000.

On January 1, 2020,Ivanhoe Company, a calendar-year company, issued $1600000of notes payable, of which $400000is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2020, is:

Current liabilities, $1600000.

Long-term debt, $1600000.

Current liabilities, $400000; Long-term Debt, $1200000.

Current liabilities, $400000; Long-term Debt, $800000.