(Please make sure the answer is correct!)

2. Shidan Apartments purchased an apartment building to rent to university students on November 18, 2016. The following costs were incurred during 2016, before the tenants moved in: Purchase price of the building $220,000 Purchase price of the land 100,000 Transfer taxes 10,000 Interest incurred on the mortgage loan to purchase 4,000 Attorney and real estate agent's fees 15,000 Repave the parking lot 6,000

How much will Shidan Apartments record as an asset? a. $320,000 b. $345,000 c. $351,000 d. $355,000

Wexford Co.

Wexford Co. purchased a new delivery truck at the beginning of 2016. The truck has a cost of $37,000, an estimated life of 5 years, and an estimated residual value of $7,000. A full year's depreciation expense is to be recorded in 2016. The truck was driven 20,000 miles during 2016 and 24,000 miles during 2017. The number of expected miles over five years is 100,000.

4. Refer to information for Wexford Co.

By what amount would double-declining-balance depreciation exceed straight-line depreciation over the 5-year life of the truck? a. The salvage value of $7,000. b. Cost less total depreciation. c. Cost plus total depreciation. d. Total depreciation expenses under double-declining-balance and straight-line depreciation are equal.

6. Blanket Airlines acquires a new aircraft. It has an estimated life of 15 years and should be used for 15,000 hours of flight. What is the most appropriate method of depreciation to properly match revenues and expenses? a. Double-declining-balance b. Revenue expenditure method c. Straight-line d. Units-of-production

8. The accounting life of intangible assets is determined by a. their legal lives. b. their useful lives. c. their legal lives or useful lives, whichever is shorter. d. the tax life mandated by the IRS.

10. A bank loaned Darden Company $10,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry made by Darden to record receipt of the cash would include a a. an increase in Cash for $9,400 b. an increase in Cash for $600 c. a decrease in Notes Payable for $10,600 d. a decrease in Notes Payable for $9,400