26. Goodwill A) may be expensed upon purchase if desired. B) is only recorded when the purchase of an entire business occurs. C) can be sold by itself to another company D) can be purchased and charged directly to stockholders'equity. A company sells a plant asset that origially cost $360,000 for $120,000 on December 31, 2017. The accumulated depreciation account had a balance of $180,000 after the current years depreciation of $30,000 had been recorded. The company should recognize a A) $60,000 loss on disposal. B) $40,000 gain on disposal. C) $120,000 loss on disposal. D) $120,000 gain on disposal. 27. What is the total stockholders' equity based on the following account balances? Common Stock Paid-In Capital in Excess of Par Retained Earnings Treasury Stock A) $800,000. B) $975,000. C) $1,000,000. D) $1,150,000. 28. $950,000 50,000 175,000 25,000 29. Most companies pay current liabilities A) out of current assets. B) by issuing stock creating long-term liabilities. D) by issuing interest-bearing notes payable. 30. Liabilities are classified as current or long-term based on their A) payment terms. B) amount. C) due date D) description Version 2 Page 6