The Company has just purchased new equipment for $90,000. The new equipment has an estimated useful life of five years with estimated value of $10,000 at the end of its useful life. Using the straight-line depreciation method, estimate the annual depreciation.

a) $10,000.

b) $16,000.

c) $18,000.

d) $30.000.

A 90-day note for $8,000 with an interest rate of 8 percent per annum will have a maturity value of __________. (Assume that there are 360 days in a year for the purpose of calculating the interest.)

a) $8,000.

b) $8,160.

c) $8,640.

d) $10,200.

Beginning Inventory is $1,000, Inventory Purchases are $1,000, Ending Inventory is $500, and Goods used internally is $250. What is the Cost of Goods Sold?

a) $250.

b) $500.

c) $750.

d) $1,000.

e) $1,250.