QUESTION 21 Easter Corporation purchased a new manufacturing building during the current year. The building has an estimated useful life of 30 years. The appropriate year-end adjusting entry would be A. Debit Depreciation Expense and credit Accumulated Depreciation. O B. Debit Accumulated Depreciation and credit Building. O C. Debit Building Expense and credit Cash. O D . Debit Depreciation Expense and credit Building. QUESTION 22 A company declared cash dividends of $0.20 per share. If there are 500,000 shares of common stock authorized, 100,000 shares issued, and 80,000 shares outstanding at the date of declaration, what is the amount that the company should record for the dividend? O A. $16,000 O B. $20,000 O C. $4,000 O D. $800,000 QUESTION 23 Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, what does this indicate? O A. The contractual interest rate exceeds the market interest rate. O B. The contractual interest rate and the market interest rate are the same. O C. The market interest rate exceeds the contractual interest rate. O D. No relationship exists between the market and contractual interest rates. QUESTION 24 Tommy Caldwell invests $35,516.80 now for a series of $5,000 annual returns beginning one year from now. Tommy will earn 10% on the initial investment. What is the approximate number of annual payments Tommy will receive? O A. 13 O B. 6 O C.7 O QUESTION 25 On January 1, 2019, Apollo Company purchased factory equipment for $350,000. It is estimated that the equipment will have a $35,000 salvage value at the end of its estimated 5-year useful life. If Apollo uses the double-declining method of depreciation, what is the depreciation expense for 2020 (year 2)? O A. $140,000 O B. $75,600 O C. $84,000 O D. $126,000 QUESTION 26 Evergreen Inc. sold 10,000 shares of its $5 par value common stock for $25 per share. What is the effect of this transaction on the Common Stock account? O A. Increase Common Stock for $200,000. O B. Decrease Common Stock for $250,000. O C. Increase Common Stock for $50,000. O D. Increase Common Stock for $250,000