Question 3 2 pt: ABC. Co., acquired new machinery with a price of $550 by trading in similar old machinery and paying $150. The old machinery originally cost $900 and had accumulated depreciation of $500. In recording this transaction, Bacon Company should record a.the new machinery at $550 b.a loss of $500 c.a gain of $150 d.the new machinery at $900 OA B oc OD Question 4 2 pt two common allocation methods are activity-based allocation and time-based allocation. O True O False Question 5 1 pt: Service life is estimated based on the maximum life (or usage) of an asset, O True O False Question 1 2 pt which of the following is not reported as the initial value of a newly acquired equipment? a. Tax and purchase price b. Shipping cost and installation cost c. utility costs that incurred as a result of running the machine non-stop for 2 months OA OB Question 2 2 pt A new machine with a purchase price of $500, with transportation costs of $50, installation costs of $20, would be reported on the balance sheet at a value of: a $500 b.$550 c.$570 d. $520 OB OD Question 6 1 pts Allocation base equals the initial value of an asset minus the expected residual value at the end of its service life. True False