The c amount of an asset is its original cost less accumulated depreciation. 5. Unearned income is classified as a in the balance sheet as, if the income is not earned, it may need to be repaid. 6. Sampras Company purchased a machine for $30 000 on 1 January 2010 with an estimated life of 5 years and a residual value of zero. The straight-line method of depreciation is used. What is the carrying value of the machine on the 31 December 2011 in the balance sheet of Sampras Company? Select one: a. S30 000 b. $24 000 C. $18 000 d. $12 000 7. On 1 July 2011 Tan Traders paid $600, representing a two-year insurance premium. The $600 was initially recorded in the Insurance expense account. After adjustment at 31 December 2012, the close of the annual accounting period: Select one: a. Insurance expense in the income statement is $600 and prepaid insurance in the balance sheet is so b. Insurance expense in the income statement is $150 and prepaid insurance in the balance sheet is $450 C. Insurance expense in the income statement is $450 and prepaid insurance in the balance sheet is so d. Insurance expense in the income statement is $300 and prepaid insurance in the balance sheet is $150 C 8. If total liabilities are $120 000, total assets are $280 000 and total share capital is $140,000, the amount of retained earnings is: Select one: a. $20 000 b. $110 000 c. $140 000 d. $160 000 9