Use This Information Pertaining to Tucson Company to Answer the Following

question 36

Multiple Choice

Use this information pertaining to Tucson Company to answer the following question. 1.The corporation's Supplies account showed a beginning debit balance of $400 and supplies purchased of $1,600.There were $600 of supplies on hand at year end.
2) Depreciation on a building being depreciated over 5 years is estimated to be $10,000 per year.The building was purchased at the beginning of the prior year for $50,000.
3) A one-year insurance policy was purchased for $4,800.Five months have passed since the purchase.
4) Accrued interest on a note receivable amounted to $200.
5) The company received a $3,600 advance payment during the year on services to be performed.By the end of the year,one-third of the services had been performed.
Which of the following statements is correct regarding the building?

• A)The adjusting entry to record depreciation will include a credit to Accumulated Depreciation - Building $10,000.
• B)The book value of the building at the end of the current year is $30,000.
• C)The Accumulated Depreciation - Building account will have a balance of $20,000 at the end of the current year.
• D)All of these choices.

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Definitions:

Unemployment Compensation

Unemployment compensation is financial support provided by the government to unemployed workers who meet certain eligibility criteria.

Social Security Tax

A payroll tax that funds the Social Security program, which provides benefits for retirees, the disabled, and children of deceased workers.

Medicare Tax Rate

The percentage of an individual's or employee's earnings that is collected by the government to fund Medicare, a federal health insurance program.

State Unemployment Tax

A tax imposed on employers by the state government to fund unemployment benefits for workers who have lost their jobs.