Question 55 (1 point) A truck was purchased for $40,000 and it was estimated to have a $4,000 residual value. Using the straight-line method, monthly depreciation expense of $600 was recorded. Therefore, the annual depreciation rate expressed as a percentage is A) 18%. B) 2%. C) 20%. OD) 17%. Question 56 (1 point) Apricot Inc. is repurchasing 25,000 Common Shares. The repurchase price is $4.25/share and the average issuing price was $4.00. Assuming that there is a Contributed Surplus credit balance of $5,000, the entry to record the transaction would be A) $100,000 debit to Common Shares and $6,250 debit to Retained Earnings and $106,250 credit to Cash. B) $100,000 debit to Common shares and $6,250 debit to Contributed Surplus and $106,250 credit to Cash. C) $100,000 debit to Common shares, $5,000 debit to Contributed Surplus, and $1,250 debit to Retained Earnings and $106,250 credit to Cash. D) $106,250 debit to Common shares $106,250 credit to Cash. Question 57 (1 point) Equipment was purchased for $26,000. It is estimated that the equipment will have a $3,000 residual value at the end of its 4-year useful life. Using the straight-line method, annual depreciation expense will be A) $6,500. B) $7,250. C) $7,650. D) $5,750