USE THE FOLLOWING DATA SET TO ANSWER QUESTION #29. #30 and #31 Evergreen Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $38,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $3,000. 29. What is the depreciation cost per unit? A) $3.50 per unit B) $3.80 per unit C) $0.35 per unit D) $0.38 per unit 30. If this plant asset produces 10,000 units in Year 1, how much depreciation expense will be recorded? A) $3,500 B) $3,800 C) $35.000 D) $38,000 31. The appropriate journal entry to record the Year 1 depreciation would be: A) Dr. Accumulated Depreciation Cr. Depreciation Expense B) Dr. Accumulated Depreciation Cr. Equipment C) Dr. Depreciation Expense Cr. Equipment D) Dr. Depreciation Expense Cr. Accumulated Depreciation 32. Review the following journal entry and provide the most likely explanation of what is happening to require this journal entry to be recorded: Cash $5,000 Unearned Service Revenue $5,000 A) The customer paid in advance so revenue is being recognized under the accrual basis of accounting. B) This is an adjusting journal entry to recognize revenue that has been earned in the reporting period. C) Customer is returning merchandise and the sale is being reversed / voided D) The customer paid in advance and the revenue is being recorded in a liability account until it is earned