Question 7 (2.5 points) Plant assets are recorded at cost when acquired, consistent with the cost principle. Cost includes all of the following except: 1) Purchase price 2) Installation 3) Taxes 4) Repairs. Question 9 (2.5 points) A company has a piece of equipment that cost $60,000. At the time of purchase, the equipment was estimated to have an 8 year useful life and a salvage value of $5,000. It was expected that the equipment would be used for 33,000 hours during the time the company owned it. What is the amount of depreciation expense using the units- of-production method and assuming the equipment was used for 2,400 hours? 1) $6,875.00 2) $4,000.00 3) $4,363.63. 4) $7.500.00 Question 10 (2.5 points) A company sold a piece of equipment for $30,000 that had originally cost $60,000. It had accumulated depreciation of $27,500 at the time of sale. What is the amount of gain or loss that would be recognized on the transaction? 1) Loss of $2,500 2) Gain of $2,500. 3) Gain of $30,000 4) Loss of $32,500. Question 11 (2.5 points) Question 11 (2.5 points) A company estimates that warranty expense will be 4% of sales. The company's sales for the current period are $185,000. The current period's entry to record the warranty expense is: (1) Debit Warranty Expense $7,400; credit Sales $7,400. 2) Debit Warranty Expense $7,400; credit Estimated Warranty Liability $7,400. 3) Debit Estimated Warranty Liability $7,400: credit Warranty Expense $7,400. 4) No entry is recorded until the items are returned for warranty repairs. Question 12 (2.5 points) All of the following are employer payroll taxes except: 1) Federal income tax equal to that withheld from employees. 2) State unemployment tax. 3) Federal unemployment tax. 4) FICA social security and Medicare taxes equal to that withheld from employees