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 12. Which of the following would not be capitalized as an intangible asset? 

 9. A machine cost $900,000 and was purchased on April 1, 2020. Its estimated salvage value is $100,000 and its expected life is 4 years. The company estimates that the machine can run for 100,000 hours. In 2020, the machine is used for 20,000 hours. Depreciation expense based on machine hours for 2020 is

19. Big Bear BBQ Company sold 200 smokers during 2025 for $1,700 each together with a 1-year warranty. Warranty claims are estimated to be $150 per smoker. Actual warranty claims on the smokers in 2025 were $12,550. Actual warranty claims on the smokers in 2026 are $18,500. The entry to record claims on 2026 warranty expenditures includes

7. Slotkin Products purchased a machine for $65,000 on July 1, 2025. The company intends to depreciate it over 8 years using the double-declining balance method. The salvage value is $5,000. Depreciation for 2026 to the closest dollar is

If the carpet in a rental unit becomes worn due to general wear and tear usage, what responsibility is imposed on the tenant?

8. On September 30, 2025, Markham Co. purchased machinery for $475,000. The salvage value was estimated to be $25,000. The machinery will be depreciated over eight years using the sum-of-the-years’-digits method. Depreciation expense for2026to the closest dollar is

15. Which of the following does not describe intangible assets?

 20. Matrix Company offers a cash rebate of $2 on each $6 package of batteries it sells during 2026. Historically, 10% of customers mail in the rebate form. In 2026, 5,000,000 packages of batteries are sold, and 175,000 $2 rebates are mailed to customers. What are the rebate expense and liability, respectively, shown on the 2026 financial statements?

2. Suppose your company constructed a new building. Construction began on April 1, 2006 with an expenditure of $500,000; then $600,000 on August 31, 2006; $200,000 on November 30, 2006, at which time the building was completed. A final payment of $100,000 was made on December 31. What is the capitalization period for the August 31, 2006 expenditure?

21. Under what condition is an employer required to accrue a liability for sick pay?