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
