(Multiple choice.....choose the correct answer ....without explanation)

Assume that on August 23, ABC Company asks to extend its past-due OMR800 account payable to XYZ. After some negotiations, XYZ agrees to accept OMR 200 cash and a 60-day, 12%, OMR 600 note payable to replace the account payable. From the following given options identify the journal entry in the books of ABC company.

Select one:

A.

Dr Accounts payable OMR 800 and Cr cash OMR 200, Cr Notes payable OMR 600

B.

Dr Accounts payable OMR 800 and Cr Notes payable OMR 800

C.

Dr Notes Payables OMR 600, Cash OMR200 and Cr Accounts payable OMR 800

D.

None of these options

(Multiple choice.....choose the correct answer ....without explanation)

Suppose a machine is purchased for OMR 40000 on December 31, 2014, and used throughout its predicted useful life of five years and salvage value expected to get OMR 4000. The straight-line method allocates an equal amount of depreciation to each of the years 2015 through 2019. What will be the book value of the asset at the end of 2018 year?

Select one:

A.

OMR 11200

B.

OMR21600

C.

OMR 24000

D.

OMR 35200