Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale price for the equipment was $2,000. The entry to record the sale will include a

		a. debit to Equipment for $8,000
		b. credit to Accumulated Depreciation, Equipment, for $6,700
		c. credit to Cash for $2,000
		d. credit to Gain on Sale of Equipment for $700

Assuming that inventory costs have been rising throughout the period, use of the LIFO inventory method will produce a lower value for Net Income than will the FIFO or Average inventory methods.

		a. True
		b. False

Smith Co. sold equipment that had cost $8,000 and had accumulated depreciation of $6,700. The sale price for the equipment was $1,000. The entry to record the sale will include a

		a. credit Gain on Sale of Equipment for $1,000
		b. debit Loss on Sale of Equipment for $300
		c. credit Cash for $1,000
		d. credit to Accumulated Depreciation, Equipment for $6,700

Use the following information for this question:

June 1 Inventory 100 @ $1.00

6 Purchased 150 @ $1.10

13 Purchased 50 @ $1.20

20 Purchased 100 @ $1.30

25 Purchased 25 @ $1.40

Total Units Sold in June: 300 units

Using the last-in, first-out (LIFO) method, the COST OF GOODS SOLD is

		a. $362.50
		b. $127.50
		c. $325
		d. $165