Question 23 (2 points) Equipment with a cost of $130,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight- line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? $24,000 $32,500 $33,000 $35,750 Question 24 (2 points) A fixed asset with a cost of $30,000 and accumulated depreciation of $28,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? (Hint: if you need to, you can do the journal entry in the side margin.) $2,000 loss $1,500 loss $3,500 gain $2,000 gain Question 25 (2 points) On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $215,000 with an accumulated depreciation of $185,000. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal. Accumulated Depreciation Dr. $215,000 Loss on Disposal of Asset $185,000 Equipment Cr. $215,000 Gain on Disposal of Asset $30,000 Question 26 (2 points) The Weber Company purchased a mining site for $500,000 on July 1, 2009. The company expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered. The estimated residual value of the property is $80,000. During 2009, the company extracted and sold 4,000 tons of ore. The depletion expense for 2009 is $10,500 $43,200 $16,800 $20,000 Question 27 (2 points) If a long-lived asset such as land is NOT used in operations, it should be classified under Investments. True False Question 28 (2 points) A capital expenditure is expensed immediately in the current accounting period. True False Question 29 (2 points) An extraordinary repair is considered a capital expenditure because it extends the asset's useful life. True False Question 30 (2 points) An improvement is considered a capital expenditure if it significantly improves the assets capabilities. True False