QUESTION 13 To measure depreciation, all of the following must be known except a. residual or salvage value of the asset. Ob.cost of the asset c estimated life of the asset. d. market value of the asset. c. QUESTION 14 A machine was purchased for $60,000. It has a useful life of 5 years and a residual value of $6,000. What is the annual depreciation expense using the straight-line method? a. $11,000 b. $12,000 c. $10,800 d. $13,200 QUESTION 15 A piece of equipment was purchased for $18,000. It has a useful life of 10 years and a residual value of $2,000. What is the annual depreciation expense using the straight-line method? a. $3,600 b. $1,800 C. $3,200 d. $1,600 QUESTION 16 A fixed asset with a cost of $30,000 and accumulated depreciation of $25,000 is sold for $3,500. What is the amount of the gain or loss on disposal of fixed assets? a. $1,500 loss b. $1,500 gain c. $2,500 loss d. $2,500 gain QUESTION 17 Which of the following is NOT an intangible asset? a. Accounts receivable b. Trademark Oc Copyright d. Patent QUESTION 18 A student has a loan for $50,000 at a 6% interest rate. What is the student's interest payment for one month (Hint: Remember the interest formula from our personal credit discussion) a. $300 b. $3,000 c. $250 d. S25