Question 26

Which of the following would not be included in the cost of a delivery truck to be used in the business?

1)	Purchase Price.

2)	Sales tax paid on the delivery truck.

3)	Legal fees specific to the title.

4)	Detailing the truck to include the business name and contact information.

5)	All items would be included in the cost of a delivery truck.

Question 27

In the first year of an asset's life, which of the following methods has the smallest depreciation?

1)	Straight-line.

2)	Declining balance.

3)	Sum-of-the-years' digits.

4)	Composite or group.

Question 28

Cutter Enterprises purchased equipment for $72,000 on January 1, 2020. The equipment is expected to have a five-year life and a residual value of $6,000. Using the straight-line method, the book value at December 31, 2020, would be:

Question 28 options:

1)

$57,600.

2)

$51,600.

3)

$58,800.

4)

$52,800.