Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost is $900,000. The estimated residual value of the building is $60,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly, what would be the amount of depreciation expense for the second year?

Multiple Choice

• $36,000.

• $37,630.

• $72,000.

• $66,240.

Davidson Company has 10,000,000 common shares issued and 470,000 shares of treasury stock. The stocks par value is $2 per share and its current market price is $22 per share. Which of the following is correct when a 5% stock dividend is declared and distributed?

Multiple Choice

• Retained earnings will decrease by $10.483 million.

• Retained earnings will decrease by $1.000 million.

• Retained earnings will decrease only by $0.953 million.

• Retained earnings will decrease by $11.000 million.

Maxim Corp. has provided the following information about one of its products:

Date		Transaction		Number of Units		Cost per Unit
1/1		Beginning Inventory		215		$	143
6/5		Purchase		415		$	163
11/10		Purchase		115		$	203

During the year, Maxim sold 430 units.

What is cost of goods sold using the average cost method? (Do not round intermediate computations.)

Multiple Choice

• $59,345.

• $70,263.

• $57,345.

• $72,263.