A machine was purchased for $32,000 on the first day of the first year. It has an estimated useful life of four years and a $4,000 estimated salvage value. Using straight-line depreciation, what is the assets carrying value (net book value) at the end of the third year?

1. $ 4,000.

b. $ 7,000.

c. $ 8,000.

d. $11,000. Equipment with an original cost of $10,000 and accumulated depreciation of $7,500 was sold for $4,500. This transaction would result in a

a. gain of $2,000.

b. gain of $2,500.

c. loss of $3,000.

d. loss of $5,500.

A copyright is obtained for what becomes a very successful book. The publisher expects the book to generate sales for 10 years. The copyright represents

a. a tangible asset with a definite useful life.

b. an intangible asset with a definite useful life.

c. a tangible asset with an indefinite useful life.

d. an intangible asset with an indefinite useful life.