William sold equipment and made a gain of $3,000. Would the loss be a debit item or a credit item, and on which financial statement would the loss appear?
A. credit the gain; report on the balance sheet b. debit the gain; report on the income statement c. debit the gain; report on the balance sheet
d. credit the gain; report it on the income statement.

Norton contributed equipment that had a cost of $17,000 and accumulated depreciation of $15,000. Fair market value is $5,000.

The equipment will be shown in the new partnership at what amount?

A. $17,000

b. $2,000

c. $15,000

d. $5,000

Libby Mining purchased an iron mine for $3,000,000. The mine is expected to produce 100,000 tons of iron ore during its life. This year, Libby

extracted 20,000 tons of ore. How much depletion expense should Libby record this year?

a. $30,000

b. $600,000

c. $3,000,000

d. $300,000

Williams purchased equipment with a cost of $28,000, life of 5 years and salvage value of $3,000. What is the depreciable cost of the equipment?

a. $28,000

b. $5,000

c. 25,000

d. $5,000

What is the name of the payroll document published by the Internal Revenue Service that contains the tax rates and withholding information

used by payroll managers?

a. Your Payroll Pal

b. Your Role in Payroll

c. Publication 15 Circular E

d. 50 Shades of Payroll

Cameron Corp purchased a truck. Which of the following would not be capitalized?

a. cost of test runs of the truck

b. contract price charged by dealer

c. Cost of painting the company name on the truck

d. cost of speeding ticket of the truck delivery driver