Name: Abdullah Razzak ACC 101 Lab Winter 2021 Lab Assignment #7 Multiple Choice (2.5 points each) 1. Recording a capital expenditure results in a debit to a(n): a capital account. b. asset account C. expense account. d. liability account. 2. On March 5, 2021, Lamb Remodeling sells a piece of its equipment. Lamb Remodeling had initially purchased the equipment for $310,000 in a prior period. The company had recorded $270.000 in depreciation for this piece of equipment as of the date of sale. If Lamb Remodeling receives $30.000 cash when they sell the equipment, they will report a on their 2021 Income Statement, if they instead receive $55,000 cash when they sell the equipment, they will report a a $40,000 loss; $40,000 loss. b. $10,000 gain: $15,000 loss. C. $10,000 loss: $15,000 gain. d $30,000 gain; $55.000 gain. 3. Bear Corp purchases new office furniture for $3,600,000 on January 1, 2021. Bear estimates that the furniture has a $200,000 residual value and a useful life of 8 years. Bear uses the straight-line method to record depreciation. Assume that on January 1, 2025, after 4 years, Bear realizes that the machine remaining useful life is 10 years and residual value is $100,000. A depreciation schedule would show depreciation expense for 2025. a. $425,000 b. $350,000 c. $300,000 d $250,000 e. $180,000