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48. On December 31, Strike Company has decided to sell one of its batting cages. The initial cost of the equipment was $310,000 with an accumulated depreciation of $260,000 Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $55,000. What is the amount of the gain or loss on this transaction? a. Gain of $55,000 b Gain of $5,000 c. No gain or loss d. Cannot be determined 49. The two methods of accounting for uncollectible receivables are the allowance method and the a. cost method b. interest method c. direct write-off method d. equity method 50. March30 Accounts Payable Cash 800 Paid creditors on accouns What effect does this journal entry have on the accounts? a Decrease accounts payable, decrease cash b. Increase cash, decrease accounts payable c increase accounts payable, increase cash d. Decrease accounts payable, increase cash. 1. The depreciation method that does not use residual valut in calcularing the firs year's depreciation expense is a. straight-line b. units-of-output c. double-declining-balance d. sum-of-the-digits cost method the cost of an item of inventory is $60 and the current replacement cost is $75, the 52. If amount included in inventory according to the lower of cost or market is a. $15 b. $60 C. $75 d. $135 Addison, Inc. uses a perpetual inventory system. Below is information about one inventory item for the month of September. Use this information to answer the questions that follow. (55 & 56) Sep. 1 Inventory 20 units at $20 4 Sold 10 units 10 Purchased 30 units at $25 17 Sold 20 units 30 Purchased 10units at $30 53. If Addison uses FIFO, the cost of the ending inventory on September 30 is a. $800 b. $650 c. $750 d. $700 54. If Addison uses LIFO, the cost of the ending inventory on September 30 is a. $800 b. $650 c. $750 d. $700 55. The inventory method that assigns the most recent costs to cost of goods sold is a FIFO b. LIFO c. weighted average d. specific identification 56. Inventory is classified on the balance sheet as a a. current liability b. current asset c. long-term asset d. long-term liability

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