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40 Newell Clompany has acquired land and puid $500 as a brokerage commission to acquire the land. al Nowever the company's accountant has recorded the $500 as a revenue expenditure. What is the effect of tis error? ) Net income is understated by $500 CNevenue is overstated by $$00 B) Assets are overstated by $500 D) Liabilities are overstated by $500 42) 42) Which of the following requires businesses to record depreciation? A) revenue recognition principle C) going concem principle B) cost principle D) matching principle hife of the asset is five years Residual value at the end of five years is estimated to be $87,000. What is the book value of the machine at the end of 2019 if the company uses the straight-line method of depreciation? 3) On January 1, 2018, Sanderson Company acquired a machine for $1,070,000. The estimated useful 43) D) $589,800 B) S642000 C) $676,800 A) $641,996 is eight years Calculate depreciation for the first year using the double-declining-balance method of depreciation. (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) 44) The cost of an asset is $1,090,000, and its residual value is $300,000. Estimated useful life of the asset 44) B) $98,750 C) $136,250 as D) $197.500 A) $272,500 45) A truck costs $316,000 and is expected to be driven 116000 miles during its five-year life. Residual 45 value is expected to be zero. If the truck is driven 27,000 miles during the first year, how much deprecilation should the business record under the units-of-production method? (Round any intermediate calculations to hwo decimal places, and your final answer to the nearest dollar.) B) $98,600 C) $44,440 D) $24,480 A) $73,440 46) Motor Sales sold its old office fumiture for $6000. The original cost was $16,000, and at the time of D) gain of $4000 4 sale accumulated depreciation was $14,000. What is the effect of this transaction? A)loss of S4000 B) gain of $6000 C) loss of $6000 Acoal mine cost $1,00000 and is estimated to hold 58,000 tons of coal. There is no residual value. During the first year of operations, 6000 tons are extracted and sold. Calculate depletion expense for the first year. (Round any intermediate calculations to the nearest cent.) 4 A) $103 560 B) $150,150 C) $200,200 D) $100,100 Which ofthe following is an intangible asset? A) building B) copyright C) equipment D) land )On October 1,2018, Northem Company purchased a patent for $211,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only 10 years. The patent has no residual value. What will be the balance in the patent account on September 30, 20197 A) $105,500 B)$189,900 C) $211,000 D) $200,450 Maple Company had net sales of $202,550 for the year ended December 31,2017. Its nding total assets were $85,200 and $115,500, respectively for the year ended December 31 3017