Question : 35.              Horizons, Inc. purchased a machine 3 years ago at : 1370096

35.              Horizons, Inc. purchased a machine 3 years ago at a price of $64,500. At that time, useful life was estimated at 12 years with a $6,900 salvage value, and straight-line depreciation was used. After recording depreciation for the 3rd year, Horizons decided that for future years it would revise its original estimates from 12 to 8 years and from $6,900 to $5,500. The depreciation expense to be recorded in year 4 of the machine’s life is:

A)$4,800

B)$5,575

C)$8,640

D)$8,920

36.              Advanced Systems, Inc. purchased a machine 4 years ago at a price of $82,800. At that time, useful life was estimated at 10 years with a $13,500 salvage value, and straight-line depreciation was used. After recording depreciation for the 4th year, Advanced decided that for future years it would revise its original estimates from 10 to 14 years and from $13,500 to $8,500. The depreciation expense to be recorded in year 5 of the machine’s life is:

A)$4,658

B)$4,968

C)$5,508

D)$6,930

37.              Cooper Resources, Inc. owns some equipment with an original cost of $53,800 and accumulated depreciation of $26,350. If the equipment is sold for $28,500, the gain or loss recognized on the sale would be:

A)$2,150 loss

B)$1,050 loss

C)$2,150 gain

D)$1,050 gain

38.              Spataro Industries owns some equipment with an original cost of $53,800 and accumulated depreciation of $26,350. If the equipment is sold for $25,500, the gain or loss recognized on the sale would be:

A)$ 850 gain

B)$ 850 loss

C)$1,950 gain

D)$1,950 loss

39.               Eric Lynd Industries sold equipment with an original cost of $80,000 and accumulated depreciation of $35,000. If the sale of the equipment generated a gain of $10,000 how much cash was received from the sale?

A)$ 90,000

B)$ 45,000

C)$55,000

D)$70,000

40.                Golden Eagle Golf Corp sold equipment with an original cost of $160,000 and accumulated depreciation of $95,000. If the sale of the equipment generated a loss of $15,000 how much cash was received from the sale?

A)$145,000

B)$50,000

C)$85,000

D)$70,000

41.                 Harold Lynd Corporation sold equipment with an original cost of $90,000 for $55,000 cash and recorded a gain of $5,000. What was the book value of the equipment on the date of the sale?

A)$50,000

B)$90,000

C)$60,000

D)$70,000

42.                 Galloway Corporation sold equipment with an original cost of $120,000 for $55,000 cash and recorded a loss of $15,000. What was the balance in the accumulated depreciation account on the date of the sale?

A)$60,000

B)$70,000

C)$55,000

D)$50,000

43.Cowboy Enterprises owns some equipment with an original cost of $59,000 and a book  value of $19,000 that is exchanged for a $20,000 notes receivable and $5,000 cash.  Which of the following is not part of the entry to record this transaction?

A)Debit Notes Receivable $20,000

B)Debit Accumulated Depreciation $40,000

C)Credit Equipment for $19,000

D)Credit Gain for $6,000

44.              Irmelas Enterprises owns some equipment with an original cost of $84,700 and accumulated depreciation of $41,650. If the equipment is sold for $9,500 in cash plus a 9-month $30,000 note receivable with a stated 12% interest rate, the gain or loss recognized on the sale would be:

A)$3,550 loss

B)$3,550 gain

C)$2,150 loss

D)$2,150 gain