Question 1

a). On November 1, 2016, Sandhill Co. places a new asset into service. The cost of the asset is $84000 with an estimated 10-year life and $12000 salvage value at the end of its useful life. What is the depreciation expense for 2017 if Sandhill Co. uses the straight-line method of depreciation?

A). $1200

B). $1800

C). $4200

D). $7200

b). The interest on a $28000, 6%, 90-day note receivable is

A). $2520

B). $1260

C). $840

D). $420