Please answer these questions

On 1/1/Year 1, Copley Company purchased a piece of machinery for $30,000. It had an estimated salvage value of $800 and an estimated useful life of 4 years. Copley Company uses the straight-line method of depreciation. 3 years later, the asset was sold 12/31/Year 3 for $10,000 cash. What would Copley Company recognize in their 12/31/Year 3 income statement on the sale?

A. A gain of $2,700.

B .A loss of $2,700.

C .A loss of $1,900.

D .A gain of $1,900.

Q2. Fordham Company incurred the following amounts in the month of December Year 1:

Event

Acquired equipment for $28,000 cash

Paid $600 to have the equipment shipped to its facility

Paid $1,600 to have the equipment installed

Paid $1,300 for repairs and maintenance on their equipment

As a result of the above events, how much will the equipment account increase?

A. $29,900

B. $31,500

C. $28,600

D. $30,200

E. $29,600

Q3. Copley Company recorded Prepaid Insurance of $6,000 for the purchase of a one-year insurance policy in June Year 1. The insurance policy is in effect from June 1st, Year 1 to May 31, Year 2. If Copley Company fails to make the proper Year 1 year-end adjustment for the expired insurance

A.Net income and assets will be overstated by $3,500.

B.Net income and assets will be overstated by $2,500.

C.Net income and assets will be understated by $2,500.

D.Net income and assets will be understated by $3,500.