Q1 On December 31, 2019 ButterflyNet Company has a mortgage payable for $240,000, of which $60,000 will be paid in the next 12 months. When they prepare their year-end Balance Sheet, the non-current liability balance will be:

A) $ 60,000

B) $ 180,000

C) $ 240,000

D) $ 280,000

E) Nothing, disclosure will be in the notes to the financial statements.

Q2 If a company purchases a piece of equipment on June 30 for $16,000 with no disposal value and an estimated production capacity of 40,000 bearings, what is the depreciation expense at the end of the first year if they produce 7000 bearings:

A) $ 6,000

B) $ 4,000

C) $ 2,800

D) $ 7,000

E) $ 8,000

Which of the following is NOT an intangible asset

1. Patent
2. Leaseholds
3. Trademarks
4. Goodwill
5. Mineral Resources