1. Zinnworld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. The land should be recorded in the books at:

A) $56,522.

B) $34,783.

C) $40,000.

D) $36,364.

E) $48,696.

2. Zinnworld used straight-line depreciation for a piece of equipment that cost $12,000, had

a residual value of $2,000, and a five-year service life. At the end of the third year, the

residual value was revised to $1,200 and the useful life increased (by one year) to a total

of 6 years. The the amount of depreciation expense for each of the remaining years of the

asset's useful life is:

A) $1,000.

B) $1,467.

C) $1,600.

D) $1,800.

E) $2,160.

3. The appropriate way to amortize goodwill is:

A) Straight-line over a maximum of 40 years.

B) Straight-line over a maximum of 20 years.

C) Diminishing-balance over a period not to exceed 20 years.

D) Over the estimated useful life of the goodwill.

E) Goodwill is not amortized.