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11) On December 31st, Gil Company has decided to sell one of its machines. The initial cost of the equipment was $215,000 with an accumulated depreciation of $175,000. Depreciation has been taken up to the end of the year. Gil Company found a company that is willing to buy the equipment for $19,000. What is the amount of the gain or loss on this transaction? (and please be sure to write the word gain or loss after your dollar answer, or you wont earn any points) 12) What is the cost basis (the amount recorded in the buyers accounting records) for the purchase of a used machine with a purchase price of $70,000 that requires an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $3,000? 13) Equipment purchased at the beginning of the fiscal year for $350,000 is expected to have a useful life of 5 years, or 16,000 operating hours, and a residual value of $30,000. Compute the depreciation for the first year of use by each of the following methods:

(a) straight-line

(b) units-of-production (1,200 hours first year)

(c) double-declining-balance 14) Using the following, prepare a bank reconciliation for Samtani Co. for August 31, 2017:

a) The bank statement balance is $4,010

b) The cash account balance is $4,207

c) Outstanding checks amounted to $517

d) Deposits in transit are $633

e) The bank service charge is $45

f) A check for $84 for supplies was recorded as $48 in the ledger (an error in recording) 15) Control over cash disbursements is generally more effective when

a. all bills are paid in cash.

b. disbursements are made by the accounts payable subsidiary clerk.

c. payments are made by check.

d. all purchases are made on credit. 16) A petty cash fund should not be used for

a. postage due.

B. loans to the petty cash custodian.

c. taxi fares.

d. customer lunches

17) If the month-end bank statement shows a balance of $75,000, outstanding checks are $54,000, a deposit of $15,000 was in transit at month end, and a check for $4,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

a. $37,000.

b. $40,000.

c. $75,000.

d. $118,000. 18) Who is responsible for internal controls within an organization?

a. The internal auditor

b. The external auditor

c. Management

d. The PCAOB

19) If employees are bonded

a. it means that they are not allowed to handle cash.

b. they have worked for the company for at least 10 years.

c. they have been insured against misappropriation of assets.

d. it is impossible for them to steal from the company.

20) The following article appeared in area newspapers on Saturday, December 11, 2010: NEW ROCHELLE, N.Y. A Catholic nun who ran a suburban New York City colleges finances embezzled more than $850,000 and spent it on herself, federal prosecutors said Friday. The U.S. attorney in Manhattan said Sister Marie Thornton used Iona College funds for her personal expenses from 1999 to 2009. As vice president of finance, she submitted false invoices and had Iona pay her credit card bills, the complaint said. It did not detail her expenses. Thornton, 62, was arrested Thursday and pleaded not guilty in federal court in Manhattan. She was allowed to remain free. Her attorney, Sanford Talkin, said Friday "I expect us to reach a resolution that all sides will think is fair." Thorntons religious order, the Sisters of St. Joseph, said Thornton had been recalled and her activities had been restricted. It said she has been ordered to cooperate with investigators and is being given "emotional and spiritual support." Iona reported a theft last year but did not publicly identify a suspect. In a statement Friday, still not naming Thornton, the college said, "When it was discovered that the funds had been misappropriated, we took immediate action to terminate the employee." It said the theft had been investigated and new procedures implemented. "Today, we have a new CFO and staff in place; we have recovered the majority of the missing funds; and, from the Colleges perspective, the matter is considered closed," the statement said. Iona, named for an island monastery off the Scottish coast, was founded in 1940 and has about 4,200 students. Its main campus is in New Rochelle, 15 miles from Manhattan and 40 miles from Bridgeport, CT. Required: (a) In order for fraud to occur, two elements must be present, opportunity and motivation. Please make reference to the text in the article above that supports/describes each element. (b) In addition, there are several important characteristics (different from opportunity and motivation) that appear in many fraud cases. Please describe at least two of these characteristics that are described in the article.