Your calculations are not of my interest. To pass this test, you have to select the right answers. I am not going to grade for your calculations.

*A company acquires a license at a cost of 77.000 $ at the beginning of the year (1.1.2021). The useful life is 7 years. The company uses fair value method. Two years later (31.12.2022), the company realize that the market value of the license has increased by 10.000 $. Eventually, after one year (31.12.2023), the company sold the license at a price of 60.000 $. What would be the profit/loss in this final sales transaction (use straight line method)?

a) 6.000 $ profit

b) 5.000 $ loss

c) 3.000 $ loss

d) 8.000 $ profit

*An equipment was purchased for 30.000 $. Freight charges amounted to 1.400 $ and there was a cost of 4.000 $ for building a foundation and installing the equipment. The equipment has a 5-year useful life. Cost method is employed. The equipment is sold 1 year later at a price of 29.000 $ and the loss on sale is calculated as 520 $. What is the salvage value for the equipment?

a) 5.000 $

b) 6.000 $

c) 7.000 $

d) 8.000 $

*During the year, a merchandising company had the following transactions: - Generated 300.000 $ revenue and incurred 225.000 $ expense. - Issued new shares of 20.000 at a price of 1,2 $ (par value is 1 $). - Repurchased 1.000 shares at a price of 1,1 $. - Revalued its headquarters building as well as its one of the rental properties. The increases in the values have been found to be 15.000 $ and 20.000 $, respectively. - Paid stock dividends of 10.000 $ to the investors. Suppose that the ending retained earnings balance in the Statement of Changes in Shareholders Equity is 105.000 $. Then, what was the opening balance of the retained earnings at the beginning of the year?

a) 20.000 $

b) 10.000 $

c) 25.000 $

d) 15.000 $