Please explain and show work on 3,5,6,7,8. (Highlighted answers are correct answers)

3. Benson Supply bought equipment at a cost of $72,000 on January 2, 2008. It originally had an estimated life of ten years and a straight-line depreciation method. On December 31, 2012, Benson decided the useful life likely would end on December 31, 2013, with a salvage value of $6,000. The depreciation expense recorded on December 31, 2012, should be: a. $6,000 b. $21,000 $12,000 d. $10,500 salvage value of $12,000. Benson uses the C. 4. In order to be relevant, accounting information must: a. be neutral b. be verifiable c. help predict future events d. be a faithful representation. Gordan Company sold old equipment for $40,000. The equipment had a cost of $100,000 and accumulated depreciation of $50,000. The entry to record the sale of the equipment would include a a. loss on 5. disposal of $40,000. b. gain on disposal of $40,000. c. loss on disposal of $10,000 d. gain on disposal of $10,000. 6. The cost of intangible assets should be: a. amortized over the assets' estimated useful life, or its legal life, whichever is shorter. b. amortized over a period not exceeding 5 years c. amortized over the assets' estimated useful life. d. charged to an expense account at acquisition. In a period of rising prices, the inventory method that results in the lowest income tax payment is: a. LIFO b. FIFO 7. C. average cost. d. specific identification 8 On November 30, Thatcher Company issued a National Bank. The entry on Thatcher's books to record the payment of the note at maturity will include a credit to Cash for: a. $12,000 b. $12,720 c. $12,180 d. $12,360 $12,000, 6%, 6-month note to the