QUESTIUIVI Equipment that cost $54,000 with accumulated depreciation of $30,000 was sold for $27,000 cash. The journal entry to record the sale of the equipment event would include a O A. Debit to Accumulated Depreciation for $30,000. O B. Debit to Equipment for $54,000. Credit to Equipment for $24,000. OD. Credit to Sales Revenue for $27,000. QUESTION 2 Equipment costing $20,000 with accumulated depreciation of $17,000 was sold for cash of $4,000. What is the gain or loss on the sale of the equipment? O A. $13,000 loss. O B. $1,000 gain. O C. $4,000 gain. O D. $16,000 loss. QULJHUIJ On January 1, 2019, a machine with a useful life of 5 years and a salvage value of $15,000 was purchased for $75,000. Using the straight-line method of depreciation, what is the depreciation expense for 2020 (year 2)? A. $15,000 B. $12,000 C. $24,000 OD. $30,000 QUESTION 4 What is the amount of total stockholders' equity based on the following accounts reported by a company at the end of the year? $ 50,000 400,000 175,000 25,000 Common Stock Paid-in Capital in Excess of Par Value Retained Earnings Treasury Stock A. $650,000 OB. $450,000 C. $75,000 OD. $600,000 On August 1, 2018, a company issued $400,000 of 6%, 20-year bonds at 100. Interest is payable annually, on August 1. The company has a fiscal year end of December 31 and recorded the appropriate adjusting entry to accrue interest on the bonds. The journal entry to record the annual interest payment on August 1, 2019 would include a: O A. Credit to Bonds Payable for $400,000. O B. Credit to Interest Payable for $10,000. O C. Credit to Cash for $24,000. O D. Debit to Interest Expense for $24,000. QUESTION 6 A company set aside $200,000 for possible losses from lawsuits over a defective product in a contingency fund. The lawsuits are not expected to be settled for 6 years. Assuming an 8% interest rate, what will be the balance of the contingency fund at the end of the 6 years? O A. $317,374 O B. $1,467,184 O C. $924,576 O D. $296,000