Answer Happy

____ 29. A fixed asset with a cost of
$42,000 and accumulated depreciation of $38,500 is traded for a
similar asset priced at $60,000. Assuming a trade-in allowance of
$5,000, the cost basis of the new asset is (assume the exchange
lacks “Commercial Substance”):
a.
$58,000
b.
$58,500
c.
$60,000
d.
$61,500
____ 30. Which of the following are
included in the employer's payroll taxes?
a.
SUTA taxes
b.
FUTA taxes
c.
FICA taxes
d.
all of the above
____ 31. A fixed asset with a cost of
$40,000 and accumulated depreciation of $36,500 is traded for a
similar asset priced at $60,000. Assuming a trade-in allowance of
$3,000, the recognized loss on the trade is
a.
$1,000
b.
$3,500
c.
$ 500
d.
$1,500
____ 32. The maturity value of a
$40,000, 90-day, 6% note payable is
a.
$40,600
b.
$42,400
c.
$600
d.
$2,400
____ 33. When a company exchanges
machinery and receives a trade-in allowance greater than the book
value, this transaction would be recorded with the following entry
(assume the exchange lacks “Commercial
Substance”):
a.
debit Machinery and Accumulated Depreciation; credit Machinery,
Cash, and Gain on Disposal
b.
debit Machinery and Accumulated Depreciation; credit Machinery
and Cash
c.
debit Cash and Machinery; credit Accumulated Depreciation
d.
debit Cash and Machinery; credit Accumulated Depreciation and
Machinery
____ 34. On June 8, Acme Co. issued an
$80,000, 6%, 120-day note payable to Still Co. (assume that the
fiscal year of Acme Co. ends June 30). What is the
amount of interest expense recognized by Acme in the current fiscal
year?
a.
$293.33
b.
$400.00
c.
$391.11
d.
$1,600.00