1. Hearth Company uses the units-of-production method to estimate depreciation. The company purchased a new machine for $52,000 that will produce an estimated 370,000 units over its useful life. The estimated residual value of the machine is $5,000. What is the depreciation rate per unit?

Multiple Choice

$1.14

$0.14

$1.13

$0.13

2. A corporate charter specifies that the company may sell up to 22 million shares of stock. The company issues 14 million shares to investors and later repurchases 4.0 million shares. The number of issued shares after these transactions have been accounted for is:

Multiple Choice

14 million shares.

11 million shares.

10 million shares.

18 million shares.

3. A corporate charter specifies that the company may sell up to 20 million shares of stock. The company issues 12 million shares to investors and later repurchases 3 million shares. The number of issued shares after these transactions have been accounted for is:

Multiple Choice

12 million shares.

11 million shares.

9 million shares.

5 million shares.