On June 8, Alton Co. issued an $73,484, 6%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar.

Select the correct answer.

$4,409

$77,893

$73,484

$74,954

2.

On June 1, Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years or 30,000 hours. Using straight-line depreciation, calculate depreciation expense for the first year, which ends on December 31.

$17,500

$12,500

$30,000

$40,000