1. The equipment was purchased for $17,000. Freight costs were $700 and there was a cost of...

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1. The equipment was purchased for $17,000. Freight costs were $700 and there was a cost of $2,000 to build the foundation and install the equipment. The equipment is estimated to have a salvage value of $3,000 at the end of its 5-year useful life. Each year's depreciation expense using the straight-line method will be

2. A business has the following assets:

Buildings and Equipment, less accumulated depreciation of $2,500,000 $12,000,000
Copyright 1,200,000
Patents 5,000,000
Earth 6,000,000

The total amount reported under Property, Plant, and Equipment would be

3. A factory machine was purchased for $25,000 on January 1, 2005. It was estimated to have a salvage value of $5,000 at the end of its five-year useful life. It was also estimated that the machine would work 40,000 hours in the 5 years. If the actual number of machine hours operated in 2005 was 4,000 hours and the company uses the unit of activity method of depreciation, the amount of depreciation expense for 2005 would be

4. Assuming a perpetual inventory system is used, what is the cost of goods sold on a LIFO basis?
July 1 Beginning Inventory....10 units at $120 each
July 5 Shopping 60 units at $112 each
July 14 Sales 40 units
July 21 Shopping 30 units at $116 each
July 30 Sales 28 units