MULTIPLE CHOICE QUESTIONS-INSERT ANSWER IN THE BOX TO THE LEFT-EITHER UP tortor in answer bank and dropdown to select your answers Choose regle purchases land for $40,000 and additionally, pays his lawyer $5,000 to advise him in the purchase. The $5,000 would be debited to a Land b. Miscellaneous Expense c legal Revenue d. Leral Expense Choose Wardinc owns Equipment with cost of $30,000 and accumulated depreciation of $19,000. The Equipment is sold for 516,000 cash Which of the following is true? a. Gain on Disposal will be debited for $5,000 b loss on Disposal will be credited for $1.000 c Gain on Disposal will be credited for $5,000 d. Loss on Disposal will be credited for 55.000 Choose who pays unemployment taxes? A employer and employee b. employer only c. employee only d. neither employer nor employee Choose ohmion purchases a piece of equipment with an estimated useful life of years. The DDB rate for this asset would be: a. 3% b 135 c. 50 d. 25 schooter on which financial statement would a accumulated depreciation be reported? A. Income Statement b. Balance Sheet c. Owner's Equity Statement d. None of these Choose: Goodwill is an intangible asset that arises when: a. a company sell a really popular product b. the company wins the President's Award C. Mr. O'Neill brings a box of Krispy Kremes to class d.one company purchases another company, paying more for it than the value of its net assets Sa Choose Leonard purchased a delivery truck and hired a local artist $2,500 to paint his company name on the side of the truck Which account would be debited for this cost? A. debit Art Expense b. debit Advertising Expense cdebit Truck d. debit Repairs Expense Choose William sold equipment and made again of $3,000 Would the loss be a debit item or a credit item, and on which financial statement would the loss appear? A. credit the pain report on the balance sheet bdebit the gain report on the income statement debit the gainc report on the balance sheet d. credit the gain report it on the income statement. Choose who pays social security taxes? A. employer only b. employee only employer and employee d. neither employer nor employee 10 Choose rein borrows $10,000 on a 6-month 6% note. The interest expense Elgin will pay at maturity on this note will be: a. 560 b. $600 $6,000 d. $300 11 Choose Warren has equipment with cost of $22,000 and accumulated depreciation of $16,000. If Warren sells the equipment for $7,000, what is the gain or loss? Again of $7,000 b. gain of $1,000 loss of $1,000 d. gain of $13,000 12 Choose! How are partners compensated in a partnership? A each partner receives a cash payment on 12/31 b. each partner gets a salary paldincat ceach partner's capital receives a portion of the net income or lost in closing d. Interest expense is debited, and each partner receives the interest in cash 12 Chooser How are partners compensated in a partnership? A each partner receives a cash payment on 12/31 b. each partner gets a salary paid in cash ceach partner's capital receives a portion of the net income or loss in closing d. Interest expense is debited, and each partner receives the Interest in cash 1 ChooseNorton contributed equipment that had a cost of $17,000 and accumulated depreciation of 515,000. Fair market value is $5,000 The equipment will be shown in the new partnership at what amount? A $17,000 b. $2,000 c. $15.000 de $5,000 34 Choom How are Research and Development costs recorded and on which statement will they be reported? A, an asset reported on the balance sheet b. an expense reported on the income statement a lability reported on the balance sheet d. none of these 15 choose? Which of the following depreciation methods is accelerated? A straight line bunits of activity e double declining balance e, all of these are accelerated 16 Choom when constructing a depreciation schedule , the accountant must remember that the book value at the end of the asset's life must be equal to the D.depreciable cost b.cost c book value de salvage value 17 Choose clark sold an asset this year for $4,000, but the book value of the asset was $7.000. What effect will this transaction have on the income statement for the year? A. an increase in net income b. a decrease in net income c. no effect on net income d we don't know 18 Chooses Social Security is a government program that provides income to cikizens after they retire b.pays people when they become unemployed provides vacation pay to working people none of these 19 Choose Tom and Jerry went into business as a partnership with Tom investing cash of $90,000 and Jerry Investing $10,000 They had to partnershiorreement. If they incur a $20,000 lows, how must they split the low? A in the ratio of their investment b. 90:10 60:40 d. 50:50 20 Choose Which of the following assets would be considered an intangible asset? a. oil well b. equipment patent de inventory 21 Choose Grandfork Company purchased a patent for $32,000 on July 1, 2020. The patent has a life of 8 years, no salvage value of Grandfork records patent amortization on December 31, 2020, how much Patent Expense will be recorded? a $32,000 b.$4,000 $2,000 d. None of these 22 Choosetubby Mining purchased an Iron mine for 53,000,000. The mine is expected to produce 100,000 tons of iron ore during its life. This year, Libby extracted 20,000 tons of ore How much depletion expense should Libby record this year? $30,000 b. 5600,000 $3,000,000 d. $300,000 22 Choose: Libby Mining purchased an iron mine for $3,000,000. The mine is expected to produce 100,000 tons of iron ore during its life. This year, Ubby extracted 20,000 tons of ore. How much depletion expense should Libby record this year? a. $30,000 b. $600,000 $3,000,000 d. $300,000 23. Choose Williams purchased equipment with a cost of $28,000, life of 5 years and salvage value of $3,000. What is the depreciable cost of the equipment? a. $28,000 b.$5,000 C. 25,000 $5,000 24 Choose: What is the name of the payroll document published by the Internal Revenue Service that contains the tax rates and withholding information used by payroll managers? a. Your Payroll Pal b. Your Role in Payroll c. Publication 15 Circular E d. 50 Shades of Payroll 25 Choose Cameron Corp purchased a truck. Which of the following would not be capitalized? a cost of test runs of the truck b. contract price charged by dealer C. Cost of painting the company name on the truck d. cost of speeding ticket of the truck delivery driver